Guest Post: Despite Serious Flaws, U.S. Safeguards Against Political Corruption Can Serve as Model for the World

Today’s guest post is from Scott Greytak, the Director of Advocacy at Transparency International US.

As much of the world converges on Atlanta for the 10th Session of the United Nations Convention Against Corruption (UNCAC) Conference of the States Parties (CoSP), the urgent need for a renewed, reinforced, and relevant global anticorruption framework takes center stage. Among the most important issues to address concerns political finance transparency, an issue that the current version of the UNCAC does not directly cover. The United States is well-positioned to provide leadership on this issue. While U.S. laws on money in politics have failed to keep pace with America’s evolving political dynamics, aspects of these laws nevertheless can and should serve as inspirations for much of the world as it struggles with political corruption. The CoSP presents a chance for the U.S. to share its experiences and lessons learned with other countries, and to support resolutions and amendments to include commitments on political finance transparency in the UNCAC itself.

Suggesting that the U.S. can be a leader or a model on the issue of regulating money in politics may sound surprising. My colleagues and I at Transparency International US are all too aware of the many failings of American democracy, including the American approach to political finance regulation. More than in any other major developed country in the world, for example, people in the United States believe that rich people buy elections, and U.S. political finance laws are in urgent need of updating, to address persistent problems like the influence of “dark money” in elections, and the need for adequately funded public financing programs for political campaigns. But comparatively speaking, some pieces of the U.S. legal framework can serve as a useful benchmark. For instance, a survey by the Global Data Barometer Political Integrity Module and the International IDEA’s Political Finance Database revealed that of 181 countries surveyed, 100 do not have any limits whatsoever on how much money can be given to a candidate for office. In contrast, the United States has comprehensive contribution limits for candidates, political parties, and traditional political action committees (even though such limits are infamously absent when it comes to “independent” expenditure committees, or Super PACs). Emphasizing this best practice, among others, on the global stage in Atlanta could help jumpstart a much-needed exchange and collaborative approach that could raise the bar for all democratic and emerging-democratic countries.

To this end, the United States should support resolutions and amendments that require countries to enact and enforce laws that disclose campaign contributions to candidates and political parties, as well as expenditures made by those candidates and parties, in a timely and publicly accessible fashion. The U.S. can also support requirements that countries to establish and appropriately fund independent oversight bodies that monitor political spending and enforce political finance laws. The U.S. delegation can support protections for whistleblowers who call out political finance violations and can urge countries to expressly commit to sharing information, best practices, and resources in fulfillment of these commitments, and to engage with civil society closely and consistently when developing and implementing these measures.

Amidst yet another year of increasing global political unrest and accompanying anxieties, successful examples of U.S. laws can and must serve as inspirations to others. In an era of seemingly limitless challenges to democracy in all regions of the world, it is this collaboration and commitment that can fortify its foundations. A first step can and must be taken by the U.S. in Atlanta.

Guest Post: Corporate Transparency Is Easy

Today’s guest post is from Gary Kalman and Annalise Burkhart, who are, respectively, Executive Director and Program & Research Associate for Transparency International U.S.

Readers of this blog know well that anonymously owned companies are the go-to vehicle for laundering illicit funds. From the revelations of hidden assets exposed in the Panama Papers to the search for sanctioned assets of Russian oligarchs, anonymous corporate structures enable corrupt and criminal actors to steal, hide, launder and benefit from illicit proceeds with impunity. The anticorruption community therefore cheered when the U.S. Congress passed the Corporate Transparency Act (CTA), requiring the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to collect beneficial ownership information for U.S. companies and align with international standards.

As the Treasury Department is finalizing its rules for implementing the CTA, the law’s opponents have been engaged in a campaign of scaremongering aimed particularly at small businesses, with various memos, articles, and notices warning of a burdensome reporting process, uncertain or unclear disclosure requirements, and the risks of hefty fines and possible jail time for business owners who might inadvertently fail to file the appropriate information.

These claims are exaggerated, inaccurate, and misleading. Instead of providing helpful guidance to small businesses, these alarmists are stoking fear among business owners, likely to mobilize political opposition to the effective implementation of the CTA. Here are the facts: Continue reading

How Should the U.S. Anticorruption Community Respond to Trump? Engagement vs. Confrontation

So Donald Trump is now the President of the United States, and has been for almost two weeks. Yes, this is really happening. And yes, this is really frightening. As has been pointed out countless times, Donald Trump poses a unique and unprecedented threat to American political institutions. It’s not mainly the hard-right policies that President Trump and the Republican Congress will push. People can strongly disagree with much of that policy agenda (as I do), but those policy positions are, alas, within the American political mainstream. And it’s not just Trump’s obvious narcissism, racism, and ignorance, bad as those are. On top of all that, Trump seems to view the presidency mainly as an opportunity for personal enrichment, and many of his top-level advisors and appointees seem to have a similar attitude. Notwithstanding his (obviously disingenuous) “drain the swamp” rhetoric, Trump—and many congressional Republicans—seem to have little regard for basic ethical norms and principles. And there are reasonable fears, based on what we’ve seen so far, that much of the Trump Administration’s policy agenda, though couched in familiar conservative market-oriented rhetoric, will in fact be oriented toward enriching the friends and families of senior administration officials, including but not limited to Trump’s own organization.

A democratically elected head of government who ran on a populist platform, but whose agenda seems to be oriented primarily toward using political power to enrich himself and his cronies? This might be a new experience for Americans, but as Professor Palifka pointed out in her post last week, this is a familiar story in many other countries (including Mexico, Ms. Palifka’s lead example). Think Silvio Berlusconi in Italy, Nestor and Cristina Kirchner in Argentina, Thaksin Shinawatra in Thailand, Jacob Zuma in South Africa, and countless others. Now that the U.S. seems to be facing a similar situation, the U.S. anticorruption community—which I’ll define loosely as the diverse set of activists, advocacy groups, commentators, researchers, scholars, and others who focus on anticorruption in their professional work—needs to be actively involved in responding.

Unfortunately, the U.S. anticorruption community is not especially well-prepared to deal with this situation. Put aside for the moment that the most prominent international anticorruption advocacy group—Transparency International (TI)—recently voted to strip its U.S. chapter (TI-USA) of its accreditation, triggering an ongoing internal fight that has, I gather, left the chapter in limbo. (That’s a whole other story.) Much more important than any internal organizational drama is the fact that most U.S. anticorruption advocacy groups have typically focused on questions of U.S. anticorruption policy—such as FCPA enforcement, asset recovery, corporate transparency, and the like—not on systemic corruption in the U.S. government itself. True, some groups have in the past positioned themselves as fighting systemic corruption in the U.S. government, but those groups generally use a broad (in my view, overly broad) definition of “corruption” that emphasizes primarily campaign finance and lobbying reform—noble causes, to be sure, but not really the main worry right now. The U.S. anticorruption community faces a challenge that’s more akin to the challenge anticorruption communities have faced (or are still facing) in places like Mexico, Italy, Argentina, Thailand, and South Africa, though perhaps with even higher stakes.

My sense is that many leading figures in the U.S. anticorruption community are already thinking hard, and having many constructive conversations, about how to respond to the unique challenges posed by the Trump Administration. In the remainder of this post, I want to focus on a basic strategic question that I’ve seen come up many times in these conversations: Engage or confront? Continue reading

Guest Post: Why We Should Be Excited About SDG 16

GAB is delighted to welcome back Daniel Dudis, Senior Policy Director at Transparency International-USA, who contributes the following guest post:

On September 25th, the United Nations adopted the Sustainable Development Goals (SDGs). The SDGs identify development priorities and set measurable targets for progress that are to be met by 2030. They also replace the Millennium Development Goals (MDGs), adopted in 2000 and set to expire at the end of this year. The MDGs were aimed primarily at improving living conditions in developing countries, and focused on reducing extreme poverty and improving health, education, sanitation, and nutrition. Unfortunately, progress towards achieving the MDGs has been uneven at best. Notably absent from the MDGs were any commitments on improving governance or reducing corruption. Given that in most countries, government is the primary service provider for healthcare, education, and sanitation, and that government provides nutrition assistance and sets economic policy, the absence of any commitments to improve governance or reduce corruption was a notable blind spot. Honest, accountable, efficient government is the foundation upon which economic development and improved service delivery are built.

Happily, goal 16 of the SDGs fills this lacuna. Goal 16, which seeks to promote just, peaceful, and inclusive societies, includes (among other governance-related targets) significant reductions in illicit financial flows, progress on the recovery and return of stolen assets, and substantial reductions in corruption and bribery.

It is easy to be skeptical about the utility of ambitious international agreements such as the SDGs. Indeed, Matthew’s post last week, which criticized the Goal 16’s anticorruption targets on the grounds that they are ill-suited to quantitative measurement of progress, and Rick’s post yesterday, exemplify that view. Such skepticism, however, is misplaced. The inclusion of these targets in Goal 16 of the SDGs is an important step forward as it represents a clear endorsement by the community of nations that good governance and the fight against corruption are integral parts of the global development agenda. Continue reading