Some Recent Commentaries on Corruption and the Coronavirus Pandemic

As I noted last week, although this blog is going to keep on going during the COVID-19 crisis (though perhaps with somewhat reduced output), it’s a bit challenging to proceed with blogging about one problem (corruption) when another problem (the COVID-19 pandemic) is so much at the forefront of everybody’s mind. And in that last post, I noted that although there’s a well-known connection between corruption and public health generally, “so far corruption doesn’t seem to be a major issue in the COVID-19 situation.”

I think perhaps I spoke too soon. We’re already starting to see a number of interesting and useful commentaries on the connections between corruption/anticorruption and the COVID-19 pandemic (several of which readers helpfully noted in comments on last week’s post). I do think we should always try to be a bit cautious about straining to find links between whatever it is we work on and the most salient problem of the day. (I can’t help but remember that in the aftermath of the 9/11 attacks, people suddenly discovered that whatever problem they’d been working on for the past decade was inextricably linked to the threat of global terrorism.) But in this case I’m persuaded that the links are particularly plausible and important that this is something that deserves further study.

At some point, I may post some original content on this topic to GAB, but for now let me just provide links to some of the interesting early commentaries on the possible connections between corruption and the COVID-19 pandemic:

  • Natalie Rhodes, who works with the Transparency International Health Initiative, has an essay–subsequently expanded into a longer feature on Transparency International’s website–discusses some of the corruption risks during the response to an epidemic, including shortage-induced bribery risks, diversion of emergency response resources, and kickbacks in the procurement process.
  • Jodi Vittori, a fellow at the Carnegie Endowment, has a piece entitled “Corruption Vulnerabilities in the U.S. Response to Coronavirus,” which similarly emphasizes corruption risks in medical supply chains, and the greater difficulty in securing transparency and accountability during times of crisis. She lays out a series of measures that, she argues, must be integrated into all COVID-19 response legislation, and also suggests some things that ordinary citizens can do.
  • Another Carnegie Endowment fellow, Abigail Bellows, has a piece called “Coronavirus Meets Corruption: Recommendations for U.S. Leadership,” which emphasizes that the combination of systemic corruption and the COVID-19 crisis could prove especially devastating in the developing world, and suggests that the U.S. government could help ameliorate this situation by targeting more of its foreign aid at strengthening fiscal management systems, and by enacting a number of currently-pending bills that, while not specifically related to corruption in the health sector, would provide greater U.S. support to the fight against kleptocracy abroad.
  • In one of the earliest blog commentaries suggesting a corruption-coronavirus link, Gretta Fenner and Monica Guy of the Basel Institute on Governance wrote a post for the FCPA blog in late January that suggested the original coronavirus outbreak in China may have been linked to the illegal wildlife trade, and that the illegal wildlife trade is made possible by corruption–a string of connections that leads them to ask, in the title of their post, “Did corruption cause the deadly coronavirus outbreak?”

I’m sure that in the days and weeks ahead, more commentaries will appear that explore both the ways that corruption may have contributed to, or exacerbated the impact of, the coronavirus pandemic, and the corruption risks associated with the policy responses to this crisis. I probably won’t be able to keep up with all of them, but I’ll do my best to feature them on the blog when I can, and if readers are aware of other useful commentaries, please send me the information through this blog’s contact page.

Thanks everyone, and stay safe.

The Impending Repeal of the U.S. “Publish What You Pay” Rules for Extractive Industries

As many readers of this blog are likely aware, the U.S. Congress is poised to invoke a statute called the “Congressional Review Act” to override the rules that the Securities and Exchange Commission promulgated last year to implement a provision of the Dodd-Frank Act (Section 1504) that required companies in the extractive industries (oil, gas, and mining) to publicly disclose the amounts that they pay to foreign governments in connection with projects abroad. (A timeline of the legislation and its implementing regs is here.)

The vote is scheduled for this coming Monday. Like many in the anticorruption community, I think eliminating the Publish What You Pay (PWYP) regs would be a bad idea. Alas, I don’t have time to write up a substantive discussion of the issue before the Monday vote. Fortunately, there are already a fair number of discussions of the issue elsewhere; for example, Jodi Vitori of Global Witness, who previously served as an intelligence officer in the Air Force, has a succinct explanation of why eliminating these PWYP rules would be bad for U.S. national security here.

While I usually don’t use this blog to engage in direct activism/advocacy, in this case I wanted to reach out to those GAB readers who are based in the U.S., particularly those whose representatives are Republicans, and encourage you to call your House Representative and Senator to express your opposition to the invalidation of the rules implementing Section 1504. (If you’re not sure who your House Representative is, you can find that here, and you can find a list of contact information here. Senate contact information is here.)