Anti-Corruption Oversight in the American Political ProcessWinter Democracy SchoolMark Levinson, USAID Democracy Advisor – January 29, 2010

Anti-Corruption Oversight in the American Political Process

"I either want less corruption, or more chance to participate...” -American Humorist Ashleigh Brilliant

Corruption Perceptions Index 2009

World Map of Gross Domestic Product Per Capita

Rank Country Score

8 Iceland 8.711 Norway 8.612 Hong Kong 8.212 Luxembourg 8.214 Germany 814 Ireland 816 Austria 7.917 Japan 7.717 United Kingdom 7.719 United States 7.5

Rank Country Score

120 Armenia 2.7120 Bolivia 2.7120 Ethiopia 2.7120 Kazakhstan 2.7120 Mongolia 2.7120 Vietnam 2.7126 Eritrea 2.6126 Guyana 2.6126 Syria 2.6126 Tanzania 2.6

Corruption Perceptions Index 2009

Corruption in the United States

Illinois Governor Rod Blagojevich was arrested on federal corruption charges in December 2008 for conspiracy to commit fraud and solicitation of bribery in an attempt "to obtain personal gain ... through the corrupt use" of his authority to fill Barack Obama's vacated United States Senate seat by auctioning the seat off to "the highest bidder". The federal trial date has been set for 3 June 2010.

Randall "Duke" Cunningham, a United States Congressman from California, resigned on November 28, 2005, after pleading guilty to accepting at least $2.4 million in bribes. He received a sentence of eight years and four months in prison and an order to pay $1.8 million in restitution.

Corruption in the United States

Former United States Senator from Alaska, Ted Stevens, the longest-serving Republican senator in history was indicted in 2008 on seven counts of failing to report gifts received from an Alaskan oil exploration company on his Senate financial disclosure forms. He was formally charged with violation of the Ethics in Government Act. He was found guilty on all seven counts.

Corruption in the United States

United States Congressman from Ohio, James Anthony Traficant, Jr. was expelled from Congress after being convicted of taking bribes, filing false tax returns, racketeering, and forcing his aides to perform chores at his farm in Ohio and on his houseboat in Washington, D.C. He was released from prison on September 2, 2009, after serving a seven-year sentence.

Corruption in the United States

Richard M. Nixon, the 37th President of the United States, resigned from office on August 9, 1974 prior to impeachment for his role in the Watergate scandal. That scandal resulted from a break-in at the Democratic National Committee’s headquarters at the Watergate office complex in Washington, D.C. by operatives working for the Committee to Re-Elect the President. He is the only U.S. President to resign from office. The scandal, and the ensuing cover-up, exposed largely by two investigative reporters from the Washington Post, also resulted in the indictment and conviction of several Nixon administration officials.

Corruption in the United States

What Kind of Environment is Conducive to Corruption?

What Kind of Environment is Conducive to Corruption?

Perceived Need or Entitlement

What Kind of Environment is Conducive to Corruption?

Perceived Need or Entitlement

OpportunityPerceived Need or Entitlement

What Kind of Environment is Conducive to Corruption?

Perceived Need or Entitlement

Opportunity

Lack of Consequences

Perceived Need or Entitlement

What Kind of Environment is Conducive to Corruption?

Perceived Need or Entitlement

Opportunity

Lack of Consequences

CorruptionPerceived Need or Entitlement

Why is Corruption Important?

• Undermines economic development by causing distortions and inefficiencies in the marketplace.– Protects inefficient businesses that would

otherwise be unable to compete effectively in the marketplace

– Reduces the competitiveness of well run businesses that have to shoulder additional costs in increased taxes, fees, and burdensome regulations

CORRUPTION:

Why is Corruption Important?

Increases the cost of business because of:• Illicit payments and unpredictability• The additional risk to investment because of

the potential unenforceability of business agreements in the courts

• The imposition of arbitrary rules and unpredictable delays imposed to extract more payments

CORRUPTION:

Why is Corruption Important?

• Diverts public capital investment into projects where bribes and kickbacks are more plentiful, instead of into projects and programs that provide essential services or effectively generate economic growth.

• Prevents governments from collecting revenues that they are legitimately due resulting in an inability to adequately fund the government budget.

CORRUPTION:

Why is Corruption Important?

• Lowers compliance with construction, environmental, and health regulations.– Increasing maintenance costs.– Endangering peoples’ lives.

• Facilitates criminal enterprises such as drug trafficking, money laundering and trafficking in human beings.

CORRUPTION:

Rank Country Score

8 Iceland 8.711 Norway 8.612 Hong Kong 8.212 Luxembourg 8.214 Germany 814 Ireland 816 Austria 7.917 Japan 7.717 United Kingdom 7.719 United States 7.5

Rank Country Score

120 Armenia 2.7120 Bolivia 2.7120 Ethiopia 2.7120 Kazakhstan 2.7120 Mongolia 2.7120 Vietnam 2.7126 Eritrea 2.6126 Guyana 2.6126 Syria 2.6126 Tanzania 2.6

Corruption Perceptions Index 2009

The Competition for InvestmentRank 09 Country 2009 2008 2007 2006 2005 2004 2003 2002

27 Estonia 6.6 6.6 6.5 6.7 6.4 5.5 5.6 5.6

27 Slovenia 6.6 6.7 6.6 6.4 6.1 5.9 6 5.2

46 Hungary 5.1 5.1 5.3 5.2 5 4.8 4.8 4.9

49 Poland 5 4.6 4.2 3.7 3.4 3.5 3.6 4

52 Czech Republic 4.9 5.2 5.2 4.8 4.3 4.2 3.9 3.7

52 Lithuania 4.9 4.6 4.8 4.8 4.8 4.6 4.7 4.8

56 Latvia 4.5 5 4.8 4.7 4.2 4 3.8 3.7

56 Slovakia 4.5 5 4.9 4.7 4.3 4 3.7 3.7

61 Turkey 4.4 4.6 4.1 3.8 3.5 3.2 3.1 3.2

84 India 3.4 3.4 3.5 3.3 2.9 2.8 2.8 2.7

120 Armenia 2.7 2.9 3 2.9 2.9 3.1 3

Amartya Sen, 1998 Nobel Prize in Economic Sciences

“DEVELOPMENT AS FREEDOM”

• Transparency, accountability, civil freedoms, and political liberties are prerequisites for sustainable development.

• Creating a society that is free of the impediments of corruption and recognizes human rights, is not only the primary end of development, it is also the principle means of development.

Robert F. Kennedy"Laws can embody standards; governments can enforce laws — but the final task is not a task for government. It is a task for each and every one of us. Every time we turn our heads the other way when we see the law flouted — when we tolerate what we know to be wrong — when we close our eyes and ears to the corrupt because we are too busy, or too frightened — when we fail to speak up and speak out — we strike a blow against freedom and decency and justice."

Anti-Corruption Oversight in the American Political ProcessWinter Democracy SchoolMark Levinson, USAID Democracy Advisor – January 29, 2010