HONG KONG MODEL UNITED NATIONS 2014 Committee: Economic and Social Council (ECOSOC) Topic: Political and Industrial Corruption in Developing Countries Chair: Samantha Ip (140042@hkis.edu.hk)
Overview Corruption is the abuse of entrusted power for private gain. Political corruption is "manipulation of policies, institutions and rules of procedure in the allocation of resources and financing by political decision makers, who abuse their position to sustain their power, status and wealth." In other words, it is corruption in the public sector. Political corruption is measured according to the Corruption Perceptions Index (CPI) created by Transparency International. The scale ranges from 0 (highly corrupt) to 100 (very clean). Currently, Denmark and New Zealand are ranked first on the scale with scores of 91, with Afghanistan, North Korea, and Somalia ranked last with scores of 8. Corruption is a particularly serious issue in developing nations for a multitude of reasons: • Corruption disproportionately hurts the poor. Funds are diverted away from development of basic services, breeding inequality and underdevelopment. • Less-developed education systems means that citizens tend to be more ignorant of their rights. • There are inadequate controls on corruption or resources to establish independent institutions to fight against corruption. • The public sector is bureaucratic and inefficient, thus allowing illicit actions to go undetected. • Corruption is further exacerbated by the fact that political figures are unwilling to take a stand against corruption, for fear of jeopardizing their own careers or deviating from the status quo. The presence of corruption is also heavily linked to the type of government and culture present within a nation. For example, the giving and receiving of favors features heavily in Chinese culture. This, combined with a history of using guanxi (or interpersonal interactions) to gain political power, has contributed to the proliferation of corruption present in the nation today.
What about the relationship between the public and private sector when it comes to corruption? This is where industrial corruption comes in. Industrial corruption is corruption that occurs in the private sector (it is also called corporate corruption). Industrial corruption occurs when companies make use of bribes and other favors to gain an advantage in selling their goods and services to a market. There is great incentive to participate in corruption, because businesses that do not participate (ex. through bribing government officials for access to resources) are outcompeted by others who do. The presence of corruption also discourages foreign investment, because foreign companies do not want to have to pay bribes to operate. This further limits economic growth. The United Nations Office on Drugs and Crime (UNODC) created the UN Convention Against Corruption in 2003. It is "a comprehensive set of standards, measures, and rules that all countries can apply in order to strengthen their legal and regulatory regimes to fight corruption." Delegates can use this document as a starting point, but must also keep in mind that this is a document intended to be applicable to the entire world. A solution that caters to developing nations in particular can - and should - differ from t In tackling this problem, one thing is for certain - simply applying the anticorruption strategies used in developed nations to developing nations is not an adequate solution. In developed nations, laws and bureaus against corruption are usually sufficient to deal with the problem, because corruption is already considered taboo. However, in nations where corruption is an integral part of governmental and economic transactions, a solution must encompass all of the economic, institutional, and cultural nuances of the problem.
Important Bodies United Nations Office on Drugs and Crime: a UN body that assists member states in working against drugs, crime, and terrorism, both intra-nationally and internationally. Assistance against corruption is one of the main services that the UNODC provides to member nations. Transparency International: an NGO that is politically nonpartisan and independent, whose mission is to achieve a corruption-free world and promote transparency. World Bank: the World Bank provides loans to developing countries to help them fund projects in areas such as education, health, and infrastructure. It also provides
anti-corruption advice, to ensure that funds intended for public services are actually appropriately invested.
Possible Solutions An effective solution against corruption must encompass all of the following players: • • • • •
Government institutions Private enterprises Civil society (the amalgam of groups that represent interests and allow individuals to exercise democratic rights such as freedom of speech) NGO's Supranational organizations
The possible steps to be taken are wide-ranging. Here are just a few examples: Decrease bureaucracy Specifically, simplifying the state's intervention in the economy. If there are fewer import taxes, and less (or simplified) regulation of the allocation of resources, there are fewer opportunities for corruption to occur. Make punishments against corruption more severe …and make sure that the laws are properly implemented. Severe penalties mean that corruption is more effectively deterred. Enhance public awareness Inform the public that corruption is not the norm. People need to understand that corruption is not the way that government and businesses should operate. This is much easier said than done - corruption is often deep-rooted in a nation's culture. Make use of civil society If the people put pressure on the government to make a change, a change is more likely to occur. Supranational organizations, governments of developed nations, multinational enterprises, and NGO's can set best-practice examples These are the bodies that have the resources to operate in a corruption-free manner. Simply by setting a good example, they can show the economic and political benefits of combating corruption.
Questions for Debate What is unique about a solution against corruption for developing countries? In other words, what specifically do developing countries need to combat the issue of corruption? How can developing nations be held accountable for reform? Though there have been many global initiatives against corruption, credibility is low because there is no strict requirement for nations to actively demonstrate good governance. In addition, nations have low incentive to spend large amounts of money and resources on combating such a deep-rooted problem. Delegates should consider a solution that ensures that change will happen. How can developed nations aid developing nations in fighting against corruption? It is in developed nations' interests to aid in efforts against corruption, because corruption directly affects a nation's investment opportunities. But what can nations do that is both productive, yet does not impeded on national sovereignty? How can a solution be both effective, yet adaptable to the wide-ranging situations in individual nations? Transparency International operates out of regional offices because of a need to understand local customs and their relation to corruption. Delegates need to devise a solution that is relevant to all member nations of the General Assembly, and is also flexible enough to be adapted to each nation.
Further Reading Transparency International http://cpi.transparency.org/ UNODC website (Corruption page) http://www.unodc.org/unodc/en/corruption/index.html?ref=menuside UN Convention Against Corruption (Full Document) http://www.unodc.org/documents/treaties/UNCAC/Publications/Convention/0850026_E.pdf
Bibliography
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