Www.iaca-info.org - © 2011 Slide 1 © M. KREUTNER, 2012 The Global Anti-Corruption Agenda – wishful thinking? Martin Kreutner, IACA

www.iaca-info.org - © 2011 Slide 1© M. KREUTNER, 2012© M. KREUTNER, 2012

The Global Anti-Corruption Agenda – The Global Anti-Corruption Agenda – wishful thinking?wishful thinking?

Martin Kreutner, IACAMartin Kreutner, IACA

www.iaca-info.org - © 2011 Slide 2Foto: SN/WODICKA

‘‘Corruption at its core leaves us with a Corruption at its core leaves us with a dilemma: While strong judicial, political, and dilemma: While strong judicial, political, and

administrative structures are essential to the administrative structures are essential to the creation and perpetuation of market creation and perpetuation of market

economies,economies,these structures are woefully undermined if these structures are woefully undermined if

they are themselves permeated by market they are themselves permeated by market mentality.’ mentality.’

((Hutchcroft, 2000: 115)Hutchcroft, 2000: 115)

‘‘The key to success in business lies in The key to success in business lies in honesty:honesty:

if you manage to get rid of it, you’ve done it.’if you manage to get rid of it, you’ve done it.’

(Groucho Marx (Groucho Marx cited by Castresana, UNODC, 2004: 53)cited by Castresana, UNODC, 2004: 53)

© M. KREUTNER, 2014© M. KREUTNER, 2014

www.iaca-info.org - © 2011 Slide 3

• Bribes paid globally:Bribes paid globally:US$ 1000 billion / yearUS$ 1000 billion / year

(The World Bank 2004)(The World Bank 2004)

• Cross-border flow of global proceeds from Cross-border flow of global proceeds from criminal activities, corruption, and tax evasion:criminal activities, corruption, and tax evasion:

US$1 to 1.6 trillion / yearUS$1 to 1.6 trillion / year (The World Bank 2008)(The World Bank 2008)

• Corrupt money associated with bribesCorrupt money associated with bribesreceived by public officials from developingreceived by public officials from developing

and transition countries:and transition countries:US$ 20 to 40 billion / yearUS$ 20 to 40 billion / year

(equivalent to 20 to 40% of flows of official development assistance (ODA)(equivalent to 20 to 40% of flows of official development assistance (ODA)(The World Bank 2010)(The World Bank 2010)



• African countries:African countries:25% of GDPs25% of GDPs

(The World Bank 2008)(The World Bank 2008)

• Asian countries:Asian countries:17% of GDPs17% of GDPs

(The Asian Development Bank)(The Asian Development Bank)

• Europe ?!Europe ?!© M. KREUTNER, 2014© M. KREUTNER, 2014


• 6 out of 10 state that corruption has increased in the recent three years.

• Every 4th reports to have paid bribes in the last 12 months.

• 29% of all interviewees inform to have paid bribes to law enforcement officials.

• 76% regard political partiesas corrupt.

• 54% of all interviewees think their government is largely or entirly run by

groups acting in their own interests rather than for the benefit of the

citizens.Source: Source: TI‘s Global Corruption Barometer 2013TI‘s Global Corruption Barometer 2013(107 countries, 114,000 interviewees, Sept. 2012 – March 2013)(107 countries, 114,000 interviewees, Sept. 2012 – March 2013)



Source: TI‘s Global Corruption Barometer 2013Source: TI‘s Global Corruption Barometer 2013



Source: TI‘s Global Corruption Barometer 2013Source: TI‘s Global Corruption Barometer 2013


Key ThreatsKey ThreatsLarge-scale aggression against any Member State is now improbable. Instead, Europe Large-scale aggression against any Member State is now improbable. Instead, Europe faces new threats which are more diverse, less visible and less predictable.faces new threats which are more diverse, less visible and less predictable.

1.1. TerrorismTerrorism

2.2. Proliferation of WMDsProliferation of WMDs

3.3. Regional ConflictsRegional Conflicts

4.4. State FailureState Failure

5.5. Organised CrimeOrganised Crime

A SECURE EUROPE IN A BETTER WORLDA SECURE EUROPE IN A BETTER WORLDEUROPEAN SECURITY STRATEGYEUROPEAN SECURITY STRATEGY

Brussels, 12 December 2003Brussels, 12 December 2003

www.iaca-info.org - © 2011 Slide 9© EPAC 2010© EPAC 2010


Measuring corruption ?Measuring corruption ?


Transparency International‘s (TI)Transparency International‘s (TI)Corruption Perception Index (CPI)Corruption Perception Index (CPI)



TI‘s CPI 2012TI‘s CPI 2012



TI‘s CPI 2012TI‘s CPI 2012


Source: www.cartoonstock.com

„„First First World“World“


Quelle: TI‘s Global Corruption Barometer 2010Quelle: TI‘s Global Corruption Barometer 2010


Que

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201

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/sou

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(Spe

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Fighting corruptionFighting corruption


۩۩ ۩۩ ۩۩ ۩۩Preventio

n

Prevention

Education

Education

↔ awareness raising

↔ awareness raising

Repression/Compliance

Repression/Compliance

↔ (law) e

nforcement

↔ (law) e

nforcement

& Cooperation

& Cooperation

44 Pillar approach Pillar approach



The international AC AgendaThe international AC Agenda


The international Agenda:The international Agenda:

1977:1977: USA, Foreign Corrupt Practices Act (FCPA)USA, Foreign Corrupt Practices Act (FCPA)

1993: 1993: Transparency International Transparency International

1995:1995: CPICPI

1996:1996: OAS: Inter-American Convention against CorruptionOAS: Inter-American Convention against Corruption

1997:1997: OECD: Convention on Combating Bribery of Foreign Public Officials in OECD: Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OECD Convention)International Business Transactions (OECD Convention)

1997:1997: Council of Europe (GRECO):Council of Europe (GRECO): Civil Law ConventionCivil Law ConventionCriminal Law ConventionCriminal Law Convention

1997:1997: EU: Convention on the Fight against Corruption involving Officials of the EU: Convention on the Fight against Corruption involving Officials of the European Communities or officials of MS of the EUEuropean Communities or officials of MS of the EU


The international Agenda (II):The international Agenda (II):

2002:2002: USA: Sarbanes-Oxley-ActUSA: Sarbanes-Oxley-Act

2003:2003: African Union: Convention on Preventing an Combating CorruptionAfrican Union: Convention on Preventing an Combating Corruption

2003:2003: UN Convention against Corruption (UNCAC)UN Convention against Corruption (UNCAC)

2009:2009: 3rd CoSP to the UNCAC: (Global) Review Mechanism3rd CoSP to the UNCAC: (Global) Review Mechanism

2010:2010: USA: Dodd-Frank ActUSA: Dodd-Frank Act

2011:2011: UK Bribery ActUK Bribery Act




UNCACUNCAC::I.I.General Provisions (Art 1-4)General Provisions (Art 1-4)

II.II. Prevention (Art 5-14)Prevention (Art 5-14)

III.III. Criminalization and law enforcement (Art 15-42)Criminalization and law enforcement (Art 15-42)

IV.IV. International Cooperation (Art 43-50)International Cooperation (Art 43-50)

V.V.Asset Recovery (Art 51-59)Asset Recovery (Art 51-59)

VI.VI. Technical assistance and information exchange (Art 60-62)Technical assistance and information exchange (Art 60-62)

VII.VII. Implementation mechanism (Art 63-64)Implementation mechanism (Art 63-64)

VIII.VIII. Final provisions (Art 65-71)Final provisions (Art 65-71)

mandatorymandatory vs. vs. non-mandatorynon-mandatory provisions provisionse.g., „shall adopt“ (Art 15, 16/1, …) vs.e.g., „shall adopt“ (Art 15, 16/1, …) vs.

„„may adopt“ (Art 27/2, …)may adopt“ (Art 27/2, …)„„shall consider“ (Art 16/2, 22, …)shall consider“ (Art 16/2, 22, …)

„„may consider“ (Art 31/8, …)may consider“ (Art 31/8, …)



www.iaca-info.org - © 2011 Slide 26www.iaca.org - © 2014www.iaca.org - © 2014

• UNCAC: review mechanismUNCAC: review mechanismcircle 1circle 1 (2010-2015): criminalization, international cooperation (2010-2015): criminalization, international cooperation

circle 2circle 2 (2015-2020): prevention, asset recovery (2015-2020): prevention, asset recovery

• CoE (SG) & GRECOCoE (SG) & GRECOEvaluation round IVEvaluation round IV: parliamentarians, judges, prosecutors: parliamentarians, judges, prosecutors

• G20/B20: ICCA etc.G20/B20: ICCA etc.

• IACAIACATechnical assistance, Internat. cooperation,Technical assistance, Internat. cooperation,

Master’s programme plusMaster’s programme plus

• UNHCRUNHCR

• European Union: Corruption ReportEuropean Union: Corruption Report


Public-civic-business partnershipPublic-civic-business partnership



““Civil society can and should Civil society can and should contribute tocontribute to

the fight against corruption.the fight against corruption.But governments continue to have the But governments continue to have the

bulk of responsibility,bulk of responsibility,as they are entrustedas they are entrustedwith citizens’ power.”with citizens’ power.”

[OECD, [OECD, Fighting Corruption – What Role for Civil Society?Fighting Corruption – What Role for Civil Society? 2003] 2003]

What about the private sector?What about the private sector?


AC: demand vs. supply ?AC: demand vs. supply ?

monopolies ?monopolies ?

-> -> CSRCSR (corruption-free business model) (corruption-free business model)

collective action collective action (B20, IACA, ICCA, CEOs, …)(B20, IACA, ICCA, CEOs, …)

Public-civic-private partnerships Public-civic-private partnerships


Incentivizing self-policing & self-reporting. Incentivizing self-policing & self-reporting. Ultimately towards self-investigating? Ultimately towards self-investigating?


SEC & DoJ vs. Ralph Lauren Corporation (April 2013)SEC & DoJ vs. Ralph Lauren Corporation (April 2013)

non-prosecution agreement (1.67 mill USD) non-prosecution agreement (1.67 mill USD)

CMS:CMS:•Comprehensive compliance trainingComprehensive compliance training•Adequate FCPA guidelinesAdequate FCPA guidelines•Comprehensive guidelines re gifts and invitationsComprehensive guidelines re gifts and invitations•Guidelines against corruptionGuidelines against corruption•Reasonalble third-party-due-diligenceReasonalble third-party-due-diligence•Sanctions regimeSanctions regime•Whistleblower hotlineWhistleblower hotline•Corporate Compliance AttorneyCorporate Compliance Attorney


National vs. trans-national vs. National vs. trans-national vs. international jurisdictioninternational jurisdiction


UK Bribery ActUK Bribery Act (July 2011) (July 2011)

• Offences of bribing another personOffences of bribing another person

• Offences relating to being bribedOffences relating to being bribed

[…][…]

• Bribery of foreign public officialsBribery of foreign public officials

• Failure of commercial organisations to prevent Failure of commercial organisations to prevent bribery (bribery (!!))

.… part of business in UK .… part of business in UK ….….


HR violations ?HR violations ?


Art 1 UN Declaration on Human Art 1 UN Declaration on Human RightsRights

““All human beings are born free and All human beings are born free and equal in dignity and rights.” equal in dignity and rights.”

Art 7Art 7““All are equal before the law and are All are equal before the law and are

entitled without any discrimination to entitled without any discrimination to equal protection of the law.equal protection of the law.

All are entitled to equal protection All are entitled to equal protection against any discrimination in against any discrimination in

violation of this Declaration and violation of this Declaration and against any incitement to such against any incitement to such

discrimination.discrimination.” ”



Constitutional Court of South Africa:Constitutional Court of South Africa:

„„Corruption and maladministration are Corruption and maladministration are inconsistent with the rule of law and the inconsistent with the rule of law and the fundamental values of our Constitution.fundamental values of our Constitution.

They undermine the constitutional They undermine the constitutional commitment to commitment to human dignityhuman dignity,,

the achievement of equality and the the achievement of equality and the advancement of advancement of human rights and freedomhuman rights and freedom. .

They are the antithesis of the open, They are the antithesis of the open, accountable, democratic government accountable, democratic government

required by the Constitution.“required by the Constitution.“

(S-African Ass. Of Insurance Lawyers v. Health)(S-African Ass. Of Insurance Lawyers v. Health)



ECOWAS Community Court of Justice (2010):ECOWAS Community Court of Justice (2010):

Nigerian NGO Socio-Economic Rights and Accountability Project Nigerian NGO Socio-Economic Rights and Accountability Project (SERAP) vs. Nigerian Government:(SERAP) vs. Nigerian Government:

Nigerians‘ Nigerians‘ right to education right to education had been breached had been breached under theunder the

African Charter on Human Rights and Peoples‘ Rights African Charter on Human Rights and Peoples‘ Rights by massive grand corruptionby massive grand corruption

in the public education budget.in the public education budget.

Grand corruption Grand corruption violation of HR violation of HRrecovery of $ 21,5 million recovery of $ 21,5 million

(Economic Community of West African States Community Court)(Economic Community of West African States Community Court)


Separation of powers –Separation of powers –Independence …..Independence …..

www.iaca-info.org - © 2011 Slide 39Quelle: http://www.americanprogressaction.org/cartoons/2007/09/092007_executive.html [010411]Quelle: http://www.americanprogressaction.org/cartoons/2007/09/092007_executive.html [010411]

Executive

Executive

If you‘re not If you‘re not

subservient with subservient with

the Executive the Executive

branch, you‘re branch, you‘re

with the with the

terrorists …terrorists …

……. checks & balances . checks & balances ….….


““Be ye ever so high,Be ye ever so high,the law is above you.”the law is above you.”

Thomas FullerThomas Fuller(regularly quoted by Lord Justice Denning)(regularly quoted by Lord Justice Denning)



Supreme CourtSupreme Court S-Africa (2011) : S-Africa (2011) :

„„[The Supreme Court ruled] that international [The Supreme Court ruled] that international law […] unequivocally obliges South Africa to law […] unequivocally obliges South Africa to establish an anti-corruption entity with the establish an anti-corruption entity with the

necessary independence. […]necessary independence. […]Failure on the part of the state to create a Failure on the part of the state to create a

sufficiently independent anti-corruption entity sufficiently independent anti-corruption entity infringes a number of rights, [including] the infringes a number of rights, [including] the rights to equality, human dignity, freedom, rights to equality, human dignity, freedom,

security of the person, administrative justice, security of the person, administrative justice, and […] the rights to education,and […] the rights to education,

housing and healthcarehousing and healthcare.” .”

((Glenister v. President of the Republic of South Africa and OthersGlenister v. President of the Republic of South Africa and Others))


Mr. Milton Friedman,Mr. Milton Friedman,dean of orthodox free market economists,dean of orthodox free market economists,

has been quoted that some years earlier he has been quoted that some years earlier he would have had three words for countrieswould have had three words for countries

making the transition from socialism:making the transition from socialism:“privatize, privatize, privatize”“privatize, privatize, privatize”..

““But I was wrong,”But I was wrong,” he reportedly continued.he reportedly continued.

“It turns out that the rule of law is probably “It turns out that the rule of law is probably more basic than privatization”more basic than privatization”..


AC bad news industry …… ?AC bad news industry …… ?



GGrand rand UUnified nified ACAC TTheoryheory

??????



Danke

© Mag. Martin KREUTNER, 2003, [email protected]

An International Centre of Excellence for aAn International Centre of Excellence for aNew and Holistic Approach to Fighting Corruption New and Holistic Approach to Fighting Corruption

www.iaca.intwww.iaca.int

Empowering professionalsEmpowering professionals


World Map

IACA SIGNATORIES/PARTIES

International Organizat<ion effective 8 March 2011International Organizat<ion effective 8 March 2011

UN Observer Status (ECOSOC)UN Observer Status (ECOSOC)GRECO Observer StatusGRECO Observer Status

UNGA 2013: Observer status UNGAUNGA 2013: Observer status UNGA

In total:In total:

54 Members / 53 Signatories54 Members / 53 Signatories


• United Nations (Cooperation Agreement)United Nations (Cooperation Agreement)

• Int. Association of AC Authorities (IAACA)Int. Association of AC Authorities (IAACA)

• European Partners Against Corruption (EPAC incl. EACN)European Partners Against Corruption (EPAC incl. EACN)

• Basel Institute on Goverance (BIoG)Basel Institute on Goverance (BIoG)

• Organization of American States (OAS)Organization of American States (OAS)

• International Development Law Organization (IDLO)International Development Law Organization (IDLO)

• World Bank (INT)World Bank (INT)

• Organization for Security and Co-operation in Europe (OSCE)Organization for Security and Co-operation in Europe (OSCE)

• Global Organizations of Parliamentarians against Corruption (GOPAC)Global Organizations of Parliamentarians against Corruption (GOPAC)

• World Economic Forum (WEF)World Economic Forum (WEF)

• International Ombudsmen Institute (IOI)International Ombudsmen Institute (IOI)

• International Association of Prosecutors (IAP)International Association of Prosecutors (IAP)

Memoranda of UnderstandingMemoranda of Understanding


Master inAnti-Corruption Studies

(MACS)


Master in Anti-Corruption Studies Master in Anti-Corruption Studies (MACS):(MACS):

Graduation:Graduation:

M.A. inM.A. inAnti-Corruption Anti-Corruption

StudiesStudies


Complementing the academic side:

• Roundtable Discussions

• Teambuilding

• Special events

• (Int’l) Conference participation

• Excursions

• Various social events

Roundtables, teambuilding, and social events


Master inAnti-Corruption Studies 2014

(MACS 2014)

Application opens 15 October


3rd IACSA

International Anti-CorruptionSummer Academy, 04-13 July 2013


4th IACSA

International Anti-CorruptionSummer Academy, 03-12 July 2014

Application: 15 01 – 15 03 14

www.iaca-info.org - © 2011 Slide 55Status: Jänner 2009Status: Jänner 2009

““Corruption is one of the Corruption is one of the biggest impediments to the biggest impediments to the world's efforts to reach theworld's efforts to reach the

Millennium Development Goals.Millennium Development Goals.Corruption steals elections.Corruption steals elections.

It undermines the rule of law.It undermines the rule of law.It can jeopardize security.It can jeopardize security.And the vulnerable sufferAnd the vulnerable suffer

first and worst.”first and worst.”

(UNSG Ban Ki-Moon)(UNSG Ban Ki-Moon)


Thank youThank you

[email protected]

www.iaca-info.org - © 2011 Slide 57Photo courtesy of Anticorruption and Integrity Program, GIZ (former: GTZ)


Documents

Www.iaca-info.org - © 2011 Slide 1 © M. KREUTNER, 2012 The Global Anti-Corruption Agenda – wishful thinking? Martin Kreutner, IACA