Each nation has its own unique history and culture and meaningful change can only start from within, but the U.S. can help.
Nigerian protesters carry a mattress, on which "Kill corruption not subsidy" is written / Reuters
Corruption in emerging markets is at the core of key development, globalization, foreign policy and national security problems facing the United States. In recent years, the U.S. has had some success in implementing an international anti-bribery convention. But it has had significant issues when fighting corruption in major counter-insurgency efforts in Iraq and Afghanistan and in new international development initiatives.
As it exits Iraq and Afghanistan and tries to reshape its development programs, the U.S. faces a fundamental question: can it provide realistic leadership, with others in the world community, to help reformers in corrupt nations combat this global scourge?
Fighting corruption in emerging markets is surpassingly difficult. It involves displacing those with malign power. It cannot be initiated and led by outsiders. Corruption pervades and distorts society in nations like Russia and China where the U.S. has great interests. It was a primary cause of the popular uprisings in the Middle East and elsewhere. It remains a huge issue in the emerging markets of Africa and Asia and, especially in failed and failing states. It is a pervasive obstacle to legitimate and transparent economic globalization. And it undermines a key goal of current counter-insurgency military strategy -- the building of a civil society.
At the core of these problems is bribery of public officials, and officials' extortion and misappropriation of funds. In the last 20 years, there has been growing recognition that corruption of this sort has a widespread and insidious impact. It distorts markets and competition; breeds anger, cynicism and discontent among citizens; stymies the rule of law; corrodes the integrity of the private sector; and impairs development and poverty reduction. Bribery, extortion, and misappropriation also help perpetuate failed and failing states -- and sectors of other states -- that are incubators of terrorism, the narcotics trade, money laundering, human trafficking, counterfeiting, piracy and other kind of global crime.
As noted, the U.S. has attempted three primary initiatives against the corruption of bribery, extortion and misappropriation in recent years.
Global Anti-Bribery Conventions
Currently, 37 nations have ratified an Organisation for Economic Cooperation and Development (OECD) anti-bribery convention and enacted national laws comparable to the U.S. Foreign Corrupt Practices Act (FCPA). The OECD convention and the FCPA address an important but limited part of global corruption: prohibiting companies headquartered in the industrialized world from bribing officials in emerging markets. But, in addition to the limited effect (it does not directly address the criminal power structures in less developed countries), more than half the signatories to the convention do not have active enforcement programs, and another quarter have only modest programs. Energetic enforcement by developed world authorities is necessary to pressure their multinational corporations to create an effective, internal anti-bribery culture. Non-enforcement is pernicious protectionism, as nations, eager for trade and jobs at home (especially during a great recession), look the other way at the illicit practices of their corporations and fail to act on their anti-bribery commitments under the OECD convention.
The United States has been by far the most active nation under the convention through muscular enforcement of the FCPA (more than half the cases brought under the convention have come from the U.S. even though it has only 10 percent of OECD exports). The U.S. will continue to have a lead role beyond such prosecutions: in ensuring robust OECD monitoring (but the OECD has no sanctions over inert member nations other than naming and shaming); in pushing major exporters and bilateral partners like France and Japan to move beyond investigations to real sanctions; in helping secure the accession of China, India and Brazil (Russia, South Africa and Israel have recently ratified the convention); and in resisting efforts of some U.S. business groups, like the Chamber of Commerce, to weaken the FCPA in Congress.
Contemporary Counter-insurgency Theory
General David Petraeus's co-authored "Counterinsurgency Field Manual" puts substantial emphasis on political, social, and economic programs as more valuable than conventional military operations in removing the root causes of insurgent conflict. As refined in his famous 2009 report on the status of the Afghan war, General Stanley McChrystal articulated four pillars of U.S. counterinsurgency strategy, one of them being creation of good Afghan governance and effective anti-corruption efforts. McChrystal noted that, in a society where illicit drugs are 30 to 50 percent of the economy, there was extensive corruption and criminality among government and other leaders -- in the economy, in judicial, administrative, and political entities, and in international aid programs. This in turn created overlapping, illicit networks between government, criminal, and insurgent groups that were a well-spring of anger and disillusionment among the population.
Yet, as the United States exits Afghanistan, almost no one would say that the rampant corruption has been reduced. There have been bribery and misappropriation scandals in Afghan banks, in Afghan elections, in administration of U.S. aid funds and in everyday life. Allied anti-corruption experts have been pushed away by the Karzai government. The economy still is dependent on opium. The military was not trained to deal with these complex issues of governance, and the officials from U.S. and other development agencies, despite good intentions, have, in the broad, not effected durable change. In broad summary, the anti-corruption pillar of counter-insurgency has been weak and unstable, just as in Iraq, calling into question the important, non-military elements of the current U.S. counter-insurgency doctrine.
This administration, like most before, has paid lip service to the importance to national security and global stability of international development which spurs economic growth, builds institutions and fights corruption in the less developed world. In the last year, it has launched a number of bureaucratic initiatives, all with an anti-corruption centerpiece. In September, 2010, President Obama issued a Presidential Policy Directive on Global Development that, per the White House, "recognizes that development is vital to U.S. national security and is a strategic, economic, and moral imperative." In September, 2011, the administration launched an Open Government Partnership to support national efforts that promote transparency, fight corruption and empower citizens. Shortly thereafter, the U.S. Agency for International Development (AID) unveiled yet another initiative, Domestic Finance for Development, that will "help developing countries create reforms in tax administration, budgetary transparency and anticorruption." In addition, the U.S. seeks anti-corruption measures at the G-20, and "coordinates" such efforts with the World Bank, other international financing institutions and other industrialized nations' aid programs. And on and on and on.
President Obama claimed that he was offering a new vision of development. Rather than just delivering assistance (education, food, health care), the Administration would seek to aid nations to develop governing capacity to address problems themselves. This is, in fact, hardly a new aspiration. Development agencies have been talking about "capacity building" in less developed countries for decades. But this worthy goal collides with the deep corruption that infects attempts to build legitimate, accountable government in so many emerging markets, not just in failing states but also in rising nations like China and India where corruption is rampant. In fact, only 16 percent of AID's $11 billion in costs of operations in the fiscal year ending in September 2011 were devoted to "governing justly and democratically." And, as the President acknowledged in announcing his 2010 directive, "So we are leading a global effort to combat corruption, which in many places is the single greatest barrier to prosperity, and which is a profound violation of human rights." (Emphasis added.)
Leading a global effort to combat corruption? Hardly. What has been missing in the announcements and implementation of development initiatives is the following:
A tough analysis of the political and power structures that cause and perpetuate corruption in emerging nations.
A plausible account of the processes of political, social, economic, and legal change necessary to establish rule of law and transparent/legitimate government in the diverse cultures of varied nations across the globe and at different levels of development.
An acknowledgment, and then definition, of the limited role that outsiders, like the U.S., can play when stimulus must come from within the developing nation (which is especially difficulty in failed and failing states that pose great foreign policy and national security issues).
A realistic account of how to fund and staff that limited role, how to set priorities, how to measure progress or failure -- and a recognition of how limited are funds and how contingent are anti-corruption efforts.
Of course, asking and answering such questions would require speaking candidly (undiplomatically) about sovereign foreign nations and telling the truth in a U.S. political culture which demands posturing and bromides.
Beyond humanitarian educational, medical and nutrition foreign assistance, the United States thus has an important if limited role in assisting progressive elements of less developed countries -- when they ask -- to help create sustainable economies and economic institutions and establish legitimate, transparent, accountable government with reduced corruption. (I should add that so, too, the U.S.'s international credibility depends on effectively and energetically fighting street, organized, and white collar crime at home.)
In conjunction with national allies and international organizations, the United States needs to go beyond its successful enforcement against multinational corporations under the OECD anti-bribery convention and its Panglossian public posture on counterinsurgency and development. It needs to articulate a hard-nosed vision and set of initiatives that build upon, and do not ignore, the powerful corrupt forces that frustrate such development and governance world wide. And that do not promise too much. The great conundrum of corruption for well-meaning outsiders like the United States is that each nation has its own unique history and culture and meaningful change can only start from within, often in fraught conditions of political division and conflict.
Ben Heineman Jr. is is a senior fellow at the Belfer Center for Science and International Affairs, in Harvard's Kennedy School of Government, and at the Harvard Law School's Program on Corporate Governance. He is the author of High Performance With High Integrity.
Why Millennials aren’t buying cars or houses, and what that means for the economy
In 2009, Ford brought its new supermini, the Fiesta, over from Europe in a brave attempt to attract the attention of young Americans. It passed out 100 of the cars to influential bloggers for a free six-month test-drive, with just one condition: document your experience online, whether you love the Fiesta or hate it.
Young bloggers loved the car. Young drivers? Not so much. After a brief burst of excitement, in which Ford sold more than 90,000 units over 18 months, Fiesta sales plummeted. As of April 2012, they were down 30 percent from 2011.
Don’t blame Ford. The company is trying to solve a puzzle that’s bewildering every automaker in America: How do you sell cars to Millennials (a k a Generation Y)? The fact is, today’s young people simply don’t drive like their predecessors did. In 2010, adults between the ages of 21 and 34 bought just 27 percent of all new vehicles sold in America, down from the peak of 38 percent in 1985. Miles driven are down, too. Even the proportion of teenagers with a license fell, by 28 percent, between 1998 and 2008.
Toiling away for more hours diminishes productivity. Why do so many do it anyway?
Between 1853 and 1870, Baron Haussmann ordered much of Paris to be destroyed. Slums were razed and converted to bourgeois neighborhoods, and the formerly labyrinthine city became a place of order, full of wide boulevards (think Saint-Germain) and angular avenues (the Champs-Élysées). Poor Parisians tried to put up a fight but were eventually forced to flee, their homes knocked down with minimal notice and little or no recompense. The city underwent a full transformation—from working class and medieval to bourgeois and modern—in less than two decades' time.
Every August, Paris now sees another rapid transformation. Tourists rule the picturesque streets. Shops are shuttered. The singsong sounds of English, Italian, and Spanish float down the street in place of the usual French monotone. As French workers are required to take at least31 days off each year, nearly all of them have chosen this month to flit down to Cannes or over to Italy, Spain, or Greece, where the Mediterranean beckons and life hasn’t stopped like it has here.
The State Department is reopening its investigation into Hillary Clinton’s emails, just as she puts a Justice Department investigation behind her.
Hillary Clinton is out of the frying pan and into the fire. On July 6, Attorney General Loretta Lynch announced that the Justice Department would not pursue criminal charges against the presumptive Democratic presidential nominee for her use of a private email server at the State Department. But the following day, with that criminal investigation closed, the State Department reopened its own probe into the emails, the AP reported.
State Department spokesman John Kirby told the AP that it would be looking at potential mishandling of classified information by Hillary Clinton and her top aides. Former officials could face administrative sanctions, including a loss of their security clearances—a step that would be both politically embarrassing for Clinton, and complicate efforts to staff a national-security team should she prevail in November.
It’s known as a modern-day hub of progressivism, but its past is one of exclusion.
PORTLAND, Ore.— Victor Pierce has worked on the assembly line of a Daimler Trucks North America plant here since 1994. But he says that in recent years he’s experienced things that seem straight out of another time. White co-workers have challenged him to fights, mounted “hangman’s nooses” around the factory, referred to him as “boy” on a daily basis, sabotaged his work station by hiding his tools, carved swastikas in the bathroom, and written the word “nigger” on walls in the factory, according to allegations filed in a complaint to the Multnomah County Circuit Court in February of 2015.
Pierce is one of six African Americans working in the Portland plant whom the lawyer Mark Morrell is representing in a series of lawsuits against Daimler Trucks North America. The cases have been combined and a trial is scheduled for January of 2017.
Biology textbooks tell us that lichens are alliances between two organisms—a fungus and an alga. They are wrong.
In 1995, if you had told Toby Spribille that he’d eventually overthrow a scientific idea that’s been the stuff of textbooks for 150 years, he would have laughed at you. Back then, his life seemed constrained to a very different path. He was raised in a Montana trailer park, and home-schooled by what he now describes as a “fundamentalist cult.” At a young age, he fell in love with science, but had no way of feeding that love. He longed to break away from his roots and get a proper education.
At 19, he got a job at a local forestry service. Within a few years, he had earned enough to leave home. His meager savings and non-existent grades meant that no American university would take him, so Spribille looked to Europe.
The president’s belief in policies that can benefit all Americans is being repudiated by voters, in favor of a vision of politics as a zero-sum game.
The 2016 presidential race represents a vivid rejection of the Obama style. This is easy to miss: His approval ratings are climbing, and Hillary Clinton won the Democratic primary by running as his successor. But the two most dramatic and portentous campaigns of the year, Donald Trump’s vertiginous win and Bernie Sanders’s astonishing insurgency, both flew in the face of the Obama era’s premises.
The Obama style had two pillars. He brought to apotheosis the American political tradition of redemptive constitutionalism. This is the creed of Abraham Lincoln’s Gettysburg Address and Second Inaugural, Martin Luther King Jr.’s “I Have a Dream” speech, and Lyndon Baines Johnson’s nationally televised speech on the Voting Rights Acts of 1965, in which he promised, “we shall overcome.” Redemptive constitutionalism holds that democracy and equal freedom really are the nation’s foundations, that slavery and Jim Crow were terrible deviations from these principles, and that, if we manage to take them seriously, to live by them, Americans will finally be free together.
Yet nearly half of all married couples are likely to divorce, and many couples report feeling unhappy in their relationships. Instructors of Northwestern University’s Marriage 101 class want to change that. The goal of their course is to help students have more fulfilling love relationships during their lives. In Marriage 101 popular books such as Mating in Captivity and For Better: The Science of a Good Marriage are interspersed with meaty academic studies. Students attend one lecture a week and then meet in smaller breakout groups to discuss the weekly topics, which range from infidelity to addiction, childrearing to sexuality in long-term relationships.
It's possible to get a higher salary without taking anyone captive.
The question that most people ask themselves as they walk into their boss's office to negotiate their salaries is likely some variant of "What am I going to say?" But according to hostage negotiator Chris Voss, that might be the least important thing to keep in mind when negotiating.
Voss, now an adjunct professor at Georgetown University's McDonough School of Business, spent 24 years at the FBI. It was as an FBI agent that he started to get interested in hostage negotiations. At the time, a supervisor told him to start by volunteering at a suicide hotline to gain the set of listening abilities that a hostage negotiator needs. By 1992, he was training at the FBI's school for negotiators, and from 2004 to 2007, he was the FBI's lead international hostage negotiator. After retirement, Voss founded The Black Swan Group to bring negotiation know-how to the business world.
The Democratic National Committee chair has resigned amid an email controversy.
NEWS BRIEF Debbie Wasserman Schultz has resigned as the chair of the Democratic National Committee (DNC)following a leak of thousands of emails that appeared to show committee staffers favoring Hillary Clinton over Bernie Sanders for the party’s presidential primary contest.
The Florida congresswoman said in a statement Sunday she will step down from the job at the end of the Democratic National Convention, which begins Monday in Philadelphia.
“I know that electing Hillary Clinton as our next president is critical for America’s future. I look forward to serving as a surrogate for her campaign in Florida and across the country to ensure her victory,” she said. “Going forward, the best way for me to accomplish those goals is to step down as party chair at the end of this convention.”
As the Democratic National Convention prepares to kick off, a massive leak of hacked emails renews old questions about how the Clintons and their associates operate.
PHILADELPHIA—What’s with Hillary Clinton and email? The Democratic presidential nominee who shattered her credibility over a rogue email system while serving as secretary of state now must deal with an electronic snafu at the Democratic National Committee.
Among 20,000 DNC emails posted by WikiLeaks on the eve of Clinton’s nominating convention, there are scores in which party employees criticized and mocked Bernie Sanders during his primary campaign against Clinton. (Caveat: We don’t formally know the emails are authentic).
The email dump jeopardizes Clinton’s ability to unify the party in Philadelphia and avoid the public fratricide that spoiled Donald Trump’s convention in Cleveland. While some of the DNC emails criticized Clinton, the overwhelming number of anti-Sanders correspondences create an indelible impression that the DNC violated its oath of neutrality.