Tackling the scourge of corruption in developing nations must be a priority for the G20 going forward from the latest summit in Indonesia if poverty and increasingly extreme weather caused by Climate Change are to be tackled and long-term, sustainable growth is to be achieved, according to experts at leading counter corruption and integrity firm Pavocat Ltd.
Professor Lee Marler, a Founder and Director at Pavocat said, “Corruption is recognised and evidenced as a major cause of poverty, and strikes at the heart of economies and communities often worst hit by climate change.” Continuing, Lee Marler said, “The latest G20 summit has ended with no meaningful action to tackle the scourge of corruption or climate change. The G20 must tackle these issues in a meaningful way. The time for talk is long behind us.”
According to the World Economic Forum, corruption costs developing nations $1.26 trillion per year. This money is extracted from economies by corrupt individuals at all levels through a range of means.
It may not be the case that nations are inherently corrupt. It is more likely that the political, cultural, and legal structure of a country is simply not robust enough, leaving loopholes through which individuals intent on corrupting processes and individuals can do so for their own personal gain.
Prof. Lee Marler, Founder, and Director at Pavocat Ltd said, “Corruption devastates countries, communities, and peoples. It leads to poor educational attainment, economic stagnation, and rising crime. At its worst, it can cause significant human rights abuses, extreme poverty, and war. Counter corruption must be at the top of the G20 agenda for these reasons.”
Two key corrupt activities are:
- Solicitation of bribes. Politicians, government officials, and civil servants at any level from law enforcement to heads of government seek bribes from individuals and corporations to ease negotiations, ensure the award of contracts, buy off law enforcement officials, and many other reasons. This money is used purely for personal gain, and these individuals take advantage of a nation’s weak governance to continue
- Money Laundering and Racketeering. Jacob Zuma, former South African president was accused and charged with bribery, money laundering, and racketeering by the South African Prosecuting Authority. So deep were his corrupt roots that allegations spanned the period between 2005 to 2018.
Nelson Mandella said, “Our hope for the future depends on our resolution as a nation in dealing with the scourge of corruption.”
The G20 has recognised the challenges that corruption inflicts, and in 2010 the G20 established the G20 Anti-Corruption Working Group. The thematic areas of focus for this group were established as “public and private sector integrity and transparency, bribery, international cooperation, asset recovery, beneficial ownership, vulnerable sectors, and capacity-building”¹
Prof. Lee Marler, Founder and Director of Pavocat Ltd said, “The establishment of the G20 Anti-Corruption Working Group is to be applauded, and a welcome addition to the fight against corruption.”
Professor Marler continued, “When some G20 governments are themselves institutionally corrupt, it brings into question the effectiveness of the Group in delivering measures to tackle the scourge of corruption. The G20 must get its own affairs in order.”
For example, issues with the Chinese Belt and Road Initiative are coming to light. A study published by AidData, a research laboratory at the College of William and Mary in the US, highlights the growing number of low and middle-income countries freezing BRI projects because of overpricing, corruption, and concerns around the sustainability of debt.
And the attendance of the Russian Federation at the recent G20 Summit in Indonesia surely does not send the right message to developing nations and the global community.
Anti-Corruption measures identify corruption during or after it has been identified, and do not, in the longer term, reduce the pressures and loss of vital finance. Utilising a counter corruption model empowers nations to put in place measures that reduce or remove the risk of corruption in the first place while having those measures ready for individuals who do decide to attempt to corrupt people, processes, and institutions.
Professor Lee Marler Founder and Director at Pavocat Ltd said, “The counter corruption model empowers nations to take a preventative approach to counter corruption in all its forms. Whilst we celebrate the steps that the G20 is taking to tackle corruption, we urge the organisation to consider whether it can truly deliver for developing nations under its current model.”
ENDS
¹ Quote from The G20 Anti-Corruption Working Group Website