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Corruption 'steals' USD 2.6 trillion from global GDP: WEF

 

By TIOL News Service

NEW YORK, SEPT 11, 2018: THE Secretary General of the United Nations, Mr António Guterres, yesterday addressed the Security Council meeting on Corruption and Conflict, where he underscored the magnitude of the menace that is corruption. He drew attention to its omnipresent nature in all countries, regardless of developed, developing, rich or poor. He mentioned that data from the World Economic Forum estimated that the cost of corruption is at least USD 2.6 trillion, or 5% of global gross domestic product (GDP). Also, as per the World Bank, businesses and individuals pay more than USD 1 trillion in bribes each year.

The Secretary General also elaborated on how corruption robs schools, hospitals and others of vitally needed funds and how it rots institutions, as public officials enrich themselves or turn a blind eye to criminality.  It deprives people of their rights, drives away foreign investment and despoils the environment. He also stated that corruption breeds disillusion with Government and governance and is often at the root of political dysfunction and social disunity. The poor and vulnerable suffer disproportionately and that impunity compounds the problem. He also mentioned how corruption could be a trigger for conflict.  As conflict rages, corruption prospers and even if conflict ebbs, corruption impedes recovery.

Corruption drives and thrives on the breakdown of political and social institutions, he added. Such institutions are never more in crisis than in times of conflict.  Corruption is linked to many forms of instability and violence, such as the illicit trafficking in arms, drugs and people. The connections among corruption, terrorism and violent extremism have been repeatedly recognized by the Security Council and General Assembly.  Assets stolen through corruption can be used to finance further crimes, including violent extremist and terrorist acts. Large-scale corruption surveys conducted by the United Nations Office on Drugs and Crime (UNODC) found that bribery of public officials was particularly high in areas affected by conflict.  In conflict situations, stakeholders, such as anti-corruption commissions, civil society and the media, may be weakened or hindered in their essential work.

The consequences of corruption in times of conflict can be especially devastating as they can affect the most basic needs and exacerbate hunger and poverty. Member States must be on the front lines in the fight against corruption.  It is especially important to build up the capacity of national anti-corruption commissions and prosecutorial efforts. Governments can also enhance anti-corruption efforts by ensuring independent judiciaries, a vibrant civil society, freedom of the media and effective whistleblower protections. The international community can complement those efforts by working more effectively against money laundering, tax evasion and the illicit financial flows that have deprived countries of much-needed resources, and that feed further corruption.

He called for heightened efforts to prevent conflict and to address risks early, before they escalate.  In that spirit, combating corruption and addressing governance challenges, which lie at the root of many conflicts, must be a component of preventive approaches. This is an opportunity to build a solid foundation of trust and accountability and increase a society's resilience to crisis, Mr Guterres added. He also mentioned that in peace operations, engagement should be designed and implemented with a clearer anti-corruption lens to reinforce a culture of accountability and respect for the rule of law.

At its January Summit this year, the African Union launched the observance of 2018 as African Anti-Corruption Year.  He expressed happiness to note that anti money laundering efforts in Nigeria and Tunisia have seen some funds returned. He mentioned that there are several ways the Organization can support Member States, from sharing good practices to supporting efforts to strengthen national anti-corruption institutions. The International Commission against Impunity in Guatemala is a case in point. Before the adoption of the Convention, there was no global instrument to criminalize corruption, or to recover stolen proceeds.  Now, the Convention has 186 States Parties, and the crime of corruption is on the books of nearly every country in the world. The Convention's robust peer review mechanisms have served as a global framework for international cooperation to strengthen prevention, to disrupt money laundering schemes, return stolen proceeds from foreign banks and other necessary actions.  I encourage all Member States to bring greater resolve to its implementation.

Mr Guterres also suggested taking profit of advances of technology, which give an opportunity to massively expand public participation in governance and to increase accountability. At the same time, he mentioned that conventions and legal measures must be complemented by strong leadership that elevates corruption as a concern and makes it a priority for action. We must all do more to fight corruption, strengthen governance and build trustworthy institutions that can ensure probity and progress for all, he added.


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