This month we welcomed Laurence Cockcroft, expert on global corruption, one of the founders of 'Transparency International' and author of the book 'Global Corruption: Money, Power & Ethics In The Modern World' Laurence had addressed many august institutions across the world. But we were delighted to hear that this was the very first time he'd ever given a talk in a pub. So a Bedford Skeptics World 'Pub' Premiere, then!
The talk seemed particularly well timed in light of the recent lobbying scandal. Despite David Cameron saying in 2010 that lobbying would be "the next big scandal waiting to happen" there is, in fact, a long history of them.
Laurence started but trying to define 'corruption' and the different strands of graft. To him it is "the misuse of entrusted power for personal gain". We are not simply talking here about senior figures in the world of business and politics offering and taking bribes. There is also what's known as 'petty' corruption. For example, when school teachers require money so that your child can enter school or get 'special treatment', or when medical staff expect a payout before treating a sick child. Whilst these all fall under 'petty' corruption it doesn't feel so 'petty' if you are one of the impoverished people spending approx. 15% of their income in paying local bribes.
There is also the problem of the corrupt funding of political campaigns. Laurence told us that in India it is estimated that it costs ten million dollars to run as a Federal candidate. If you need that sort of money then you need big donations. But given that India's political parties are refusing to declare where 80% of their donations come from the suspicion is that most of it is illicit (also known as 'black money' in India.) Of course, the issue of dodgy political financing is not restricted to overseas. Here in the UK there was the 2006-07 'Cash for Honours' scandal when it was alleged that, in order to circumvent the law which stated that that names of those making political donations had to be declared, loans were being made to the Labour Party in return for peerages. No charges were brought but the scandal forced the Labour Party to return the loans.
Organised crime is another key strand of corruption. For example, there has long been a link between organised crime and politics in Italy. Giulio Andreotti was Italy's Prime Minister seven times. In 1999 he was tried and found guilty of being the Mafia's protector in Rome until at least 1980, but escaped jail because too much time had elapsed. Prosecutors who have stood up to organised crime, such as Giovanni Falcone and Paolo Borsellino, have been assassinated.Lastly, there is the Multinationals strand. Walmart has been accused of spending $156,000 in bribes to facilitate the opening of stores in Mexico. Rolls Royce has faces allegations of bribery and corruption in China and Indonesia.
Laurence went on to explain some of the reasons why corruption has proved so difficult to deal with. Any transactions in the 'shadow economy' are hard to monitor. In the UK this 'shadow' or 'black' economy is estimated to make up 10% of national income. In developing countries this can amount to 40% of the economy. Furthermore, offshore tax havens offer a useful tool for money launderers and tax evaders. Many such tax havens are under nominal UK jurisdiction such as the Channel Islands, Gibraltar and the Cayman Islands. Laurence praised the work that British Prime Minister David Cameron is doing to bring more transparency to such these shadowy practices. Additionally, the shifting tectonic plates of Geopolitics have given corruption plenty of opportunity to thrive. Both the break up of the Soviet Union and the disintergration of Yugoslavia were cited as key moments in recent history that led to new levels of corruption. Also, allies of countries like Egypt and Tunisia felt that the high levels of corruption were the price that had to be paid to keep 'friendly' regimes in power. Ironically, it was popular outrage at the levels of corruption that led to the protests that unseated Mubarak and Zine al-Abidine Ben Ali. Indeed, the first manifestation of the Arab Spring came when fruit seller Mohammed Bouazizi finally had enough of police corruption and set himself alight.
So how to deal with corruption? Laurence felt that attitudes to corruption do change and thought that a good start would be to have ethics on school curriculums across the world. But whilst individuals can make a difference Laurence feels it will never be enough without a much more systematic international approach.
Perhaps we need to demonstrate to both the governments that allow bribes to be accepted and companies that see offering bribes as just part of their business model that such practices are not just ethically wrong but bad for their bottom line? In a May 2012 article published in the 'American Business Law Journal', titled “The Business Case for Complying with Bribery Laws,” Philip M. Nichols, a professor of legal studies and business ethics at Wharton, stated that several scholars have “convincingly marshalled together research that demonstrates the impediment to economic growth, degradation of social and political institutions, misallocation of resources and skills, impoverishment and numerous other societal ills that corruption inflicts on polities and economies.” He adds that although there is a shortage of “firm-level empirical data on the consequences of paying bribes,” the existing research, combined with theoretical discussions and the realities of the regulatory environment, makes "a very strong business case ... for complying with the rules regarding bribery.”
If we can take the case for clean business and combine it with the argument that accepting corruption in society as a whole (be it political, petty or otherwise) leads to, as Transparency International put it, "popular anger that threatens to further destabilise societies and exacerbate violent conflicts.” (Witness the million or so angry Brazilians currently taking to the streets.) Then, perhaps, both Multinationals and Governments can see the benefit in both designing, policing and abiding by strong anti corruption laws. This then sets the example for ordinary people, (who feel "Why shouldn't I take my little bribe! The politicians and businessmen take thousands more!") to follow.
Laurence's talk proved very informative and he is highly recommended to other Skeptics groups.
Next Month: 'A Mugs Game: Does Your Face Betray Your Personality?' with Kathryn Ford Thursday July 18th - 7pm - The White Horse. Full details HERE.
