Category Archives: Guest Commentary

Guest Post: The Alibaba IPO–Open Sesame Time for Anticorruption?

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Dieter Zinnbauer, Senior Program Manager for Emerging Policy Issues at Transparency International, contributes the following guest post on the pending Alibaba IPO:

The anticipated listing of Alibaba, China’s rising corporate tech star, on a U.S. stock exchange is likely to be the IPO of the year. The business press is awash in speculations about the financial and economic impact of this much hyped IPO. Will this listing also create a big splash in the fight against corruption? What will be the impact on business integrity when this fast-growing Chinese tech company lists in the US and, as a result, directly subjects itself to the Foreign Corrupt Practices Act (FCPA) and other corporate governance rules?

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Guest Post: Using FOIA to Get Evidence on Bribe Takers

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Ignacio A. Boulin Victoria, Professor of Public Law at Universidad Nacional de Cuyo (Argentina) and co-founder of the human rights group CLADH, contributes the following guest post, proposing a new legal strategy for acquiring information about bribe-taking public officials:

In a recent post, Richard Messick observed–correctly–that although in the last 10-15 years we have seen greater enforcement by so-called “supply-side” countries against bribe-paying firms, “demand-side” governments have not been willing—or able—to go after the bribe-taking public officials. Rick further observes that once a bribe-paying firm has reached a settlement with a supply-side enforcer (say, the U.S. Department of Justice), it should be much easier for the demand-side government to prosecute the corrupt officials on the other side of the transaction. But we see very little of this. Rick attributes the failure to go after the bribe takers to a combination of factors: lack of capacity on the part of demand-side governments, lack of political will, and lack of information about the settlements with supply-side governments.

Those factors are all important, but Rick overlooks one salient fact about these settlements between bribe-paying firms and supply-side governments: often the public settlement documents do not reveal nearly enough information about the bribe transactions to enable the demand-side governments to take action (unless they undertake substantial and costly additional investigation). In the US, for example, the press release announcing the resolution of a Foreign Corrupt Practices Act matter often looks like this: no names regarding who received the money, no precise time concerning when, no specific department within the agency that received the money. Even if the U.S. government has provided more detailed information about the transactions to demand-side governments, the lack of public disclosure means that if the demand-side government takes no action, local activists lack the ability to use “naming and shaming” techniques effectively.

To go after the bribe-takers effectively–and to put pressure on demand-side governments to do so–we need the names, the dates, and the details of the corrupt transactions.  How do we get them?  I propose a novel (and admittedly aggressive) use of freedom of information laws, like the U.S. Freedom of Information Act (FOIA). Here’s how it would work:

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Guest Post: Good Governance as a Standalone Development Goal

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Daniel Dudis, Senior Policy Director for Government Accountability at Transparency International USA contributes the following guest post:

The United Nations is currently working towards developing a set of sustainable development goals (SDGs) that will provide the framework for whatever new global commitments are agreed upon as a replacement to the Millennium Development Goals (MDGs), which expire in 2015.  Many development priorities have been identified for potential inclusion among the SDGs–indeed, the most recent document from the U.N. SDG working group lists no fewer than 19 “focus areas” for potential inclusion. As is now widely recognized, the achievement of many of the traditional development goals (poverty eradication, nutrition, education, etc.) requires honest and effective governments. But it is important to go beyond that recognition and make good government–government that is both effective and free of corruption–a development goal in and of itself. In considering which development priorities to enshrine for inclusion among the future SDGs, UN member states should insist on the inclusion of “good governance” as a specific, standalone governance goal.

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Guest Post: Gender Equality in Parliaments and Political Corruption

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Priya Sood, Program Advisor at the Global Organization of Parliamentarians Against Corruption (GOPAC) contributes this guest post, in honor of International Women’s Day (March 8):

Does the extra X chromosome make political leaders less likely to bribe, pilfer, and lie? Are women across the board less corrupt?  According to recent research by GOPAC’s Women in Parliament Network, the reality is far more nuanced.

GOPAC conducted research based on a ten-year analysis of trends in the proportion of women elected to national parliaments as correlated to trends in national corruption levels. Surprisingly, the findings showed no general worldwide correlation between changes in parliamentary gender balance and changes in political corruption.  However, when GOPAC examined countries which have traditionally been strongholds of parliamentary democracy, the picture changed. In countries with reasonably robust democratic systems that enforce their anticorruption laws–but only in those countries–an increase in the number of women in parliament will tend to reduce corruption.

In addition to that general finding, GOPAC’s research on legislative gender equality and corruption also suggests a number of potential reforms that would help further both gender equality and anticorruption:

  • Legislation to mandate parliamentary oversight of government use and management of state financial instruments
  • Rules within political parties that commit a party to fielding a minimum number of candidates of each gender in general elections
  • Increasing female political leaders’ capacity and understanding of financial oversight mechanisms

For a more evidence that the women’s political participation tends to reduce corruption in strong democracies, but not elsewhere, see recent research by Justin Esarey and Gina Chirillo.