Integrated ISU - "Show Me The Money!

" (Corporate Bribery & Kleptocracy) by

Christian Stepanek

Preface
Corporate Bribery and Kleptocracy are 2 different things, but are very
similar in nature and are often found in the same cases. Corporate Bribery is
bribery to governments by large corporations to win favours that are in the
interest of the company. It is often found in developing countries because
the governments need funding and corporations can bring big business into
the country, but can cause issues in development itself. Kleptocracy is the
funding of government in the favour of its officials rather than the citizens
under that government. This, unlike corporate bribery, is always fueled by
the greed of the government instead of being fueled by their need to grow.
Both of these are found together because the money given to the
government by large corporations leads to the greed of the officials and
them keeping the money and not giving it back to the people.
This issue poses a serious threat to the stable development of
developing countries and should be taken seriously by anybody who cares
about maintaining safe government practices-- which includes just about
everybody Corporate Bribery and Kleptocracy are strategies used too often
even in developing countries, and introducing them to the world creates new
issues for everyone involved. In a world that is now controlled by
international affairs, one must first fix their national issues then move onto
the global scale. Unfortunately, structuring a foundation to trade with far off
countries becomes very different in many ways and using the strategies that
worked within a specific region can and will not work in the global economy.
They create issues by slowing the growth of business, switching the political
views of governments, and blurring the view of citizens who demand for
transparency.
A busy and strong economy is important for any country, especially
today, so promoting business and keeping a large range of businesses in a
country is an important stepping stone on the path to global success. All
developed countries have large and successful corporations working within
them, as well as many competitors and types of businesses. Nicaragua
considers corporate bribery and kleptocracy to be an issue; "A study, cited in
the Bertelsmann Foundation 2014, shows that 93% of the surveyed business
people working in Nicaragua consider corruption an obstacle for doing
business..." (business-anti-corruption.com) One of the most obvious
examples of success in this field is Canada. In Canada, there are numerous

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Christian Stepanek

corporations in the goods and services not only from there, but also from
other countries, most notably the United States. Competing companies like
Suncor Energy and Imperial Oil have boosted Canada to be an economic
powerhouse, but the lack of such companies in developing countries like
Afghanistan have lead to a poor economy and few companies. If the larger
companies were to bribe the government for their own gain, this would
favour them and give them a monopoly or a strong dominance over other
companies, thus preventing the market to expand and limiting growth. The
kleptocratic government would continue to take bribes or even funnel money
from taxes and similar governmental payments into its officials' personal
savings, which would take that funding away from its intended purpose of
maintaining and growing the country's infrastructure or public sectors.
The governments of developing countries can get carried away with
bribery and kleptocracy because it is easy, hard to trace, and leads to
luxurious lives for the officials. This can not only spiral into a worse issue
than before, but can also lead the government to change its views. Take
Somalia for example; being the most corrupt country on earth (according to
surveys carried out by Transparency International), it deals with great
amounts of kleptocracy in the way its government deals with issues within its
borders, thus changing their overall political system to adapt to their ways.
"Politicians in Somalia have come up with a new way to profit from that
countrys misery: They set up rival refugee camps to divert food donations
they can then steal and sell on the black market." (Fisher, Forbes Magazine).
This ultimately leads to more of the same attitude as the government gets
used to this behaviour. After not too long, citizens who support these parties
or governments (not just in Somalia) get distorted political views that adapt
to what they are accustomed to seeing. This adaptation leads to further use
of these methods and further change into this kind of business. Also, the
distorted political views of the citizens lead them to join groups that partake
in this, and in a place like Somalia, terrorist and extremist groups are all too
apparent.
The views of people outside the countries get distorted, too, but not in
the same way. In a society that pushes governments further into
transparency, deals like this blur the metaphorical glass pane in between
those who are active in these efforts, and the government. This is without a
doubt an issue in developing countries, but also in some developed countries
(though these specific countries are up for debate about their social class)
where the government officials are spending too much time worrying about
money than their country. A brilliant example is Russia's government run by

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

Christian Stepanek

Vladimir Putin. When a president of a country which 80% of supports him

has a personal value in the billions, journalists such as Karen Dawisha, a
scholar of Soviet and Russian politics at The University of Miami in Ohio take
good notice:
She reckons Putins private wealth at $40 billion and lists among his
prized possessions

yachts, planes and palaces along with a

$700,000 wristwatch collection for good

measure. As for the Friends

of Vladimir, Dawisha writes that more than half of the $50

billion

spent on the Sochi Olympics simply disappeared into the pockets of Putins
cronies. The Rotenberg brothers, Putins childhood chums, alone
garnered $2.5 billion

of the outlay for the games. (Menon, New York

Times)
The problem of transparency arises in the fact that very little of the people
inside or outside Russia know anything about this. It is blurred to the public
by Putin by not publicly displaying his wealth, and by spreading out some of
the money to trusted friends and former co-workers in the K.G.B. All of
Russia's steady 110 billionaires fall under these categories, but the common
man knows not a thing of it. Governments like these obviously pose threats
to many economic growths and to many people around the world, but they
also go against the views of those who they deal with, which further creates
transparency issues in the global economy as countries like this play a huge
role in it. Each kleptocratic move a government like that of Russia makes
influences the overall outlook and the position in world trade of that country.
This distorts peoples' views of what is really going on behind the scenes, and
these issues will continue to surmount each other until the world finally
discovers them; by then they will be too large and influential to resolve in an
economically safe or a physically safe manner.
The blocking of economic growth in many world nations, the changing
of political practices of those nations, and the overwhelming yet unseen
attack back on transparency caused by corporate bribery and kleptocracy all
effect the world as one and as individuals. No nation can successfully and
cleanly enter the world of foreign business without first addressing these

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

Christian Stepanek

issues within their own borders. Unfortunately, because of the greed of

mankind, these issues may never be completely resolved, but ways of
resolving them are becoming more available and effective.

Background

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

Christian Stepanek

Corporate bribery may enter the minds of many as a global issue, but
kleptocracy is term that not many even know of let alone consider to be a
global issue, even though they should. These issues as one have been a
problem since long before this age, and have become even worse in this age.
These are issues that should concern all people on Earth, they always should
have, and they have progressed into more major issues, but most efforts at
resolving them were and are recent projects.
First of all, corporate bribery and kleptocracy together are a "global
issue" because of how tightly wound the businesses in countries around the
world are. This leaves a lot of room for influence from the nations in which
many of these businesses run. Just like during the colonialism of Africa,
when neighboring countries could easily influence each other's political
views and when the spread of communism was a danger, countries around
the world today start to change to become more like their trading partners.
This is very obvious in Canada, as we get many of our ways from the United
States, but this occurs more easily in developing countries where poor
government control over business is common. If you look at countries in the
middle east such as Iran, you quickly notice that ways of life that originated
there seep into places like Iraq, Syria, Egypt, etc. Knowing that terrorist
groups, religion, and culture are all shared within these countries, one would
be correct in assuming that the ways of government and business are shared
too; "Since 2008, the Islamic Republic of Iran has continued to pursue a
coordinated soft-power strategy throughout its sphere of influence, using
political, economic, and military tools to promote its agenda." (Institute for
the Study of War). With the power that Arabian countries have in the trade
of oil, that same sphere can extend to the far reaches of the globe. "Total
SA... paid bribes to win oil and gas contracts in Iran.." (Boselli and Stempel,
Reuters), which displays the problems that arise around the world, including
in developed countries such as ours, when kleptocratic governments merge
with international corporations willing to bribe for their share.
This has also been apparent since the ancient Roman empire, so it is
safe to say that it has always been an issue. The Romans referred to this as
'ambitus', and in a time when government had low control over corporate
transactions, it happened often. The best example is a man by the name of
Crassus. Crassus was a politician that ran a kleptocratic government. Back
in this time, politicians were also businessmen and were seldom poor.
Crassus made much of his fortune with real estate, and owned a vast amount
of land in Rome where he sold houses, but he had a trick up his sleeve:

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

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Crassus made a fortune in real estate by controlling Rome's only fire

department

acquiring the land from property owners

victimized by fire. When a fire broke out, a

horse drawn water tank

was dispatched to the site, but before fire was put out, Crassus or
one of his representatives haggled over the price of his services, often
while the house

was burning down before their eyes. To save the

building Crassus often required the

owner to fork over title to the

property and then pay rent. (factsanddetails.com)

Crassus' corrupt governance was passed down through other leaders, and
although they did not the same as Crassus, they still had similar views.
At this time, bribery was also apparent, but less for corporation to
government and more for government to corporation. Politicians would pay
money to businessmen who had lots of connections and to the public
through events in addition to bribing the government for more say in acts
they carry out. They would also bribe judges so they could win in court
cases. This bribery got so out of hand that laws were passed making all
these things illegal; the firsg historical act against corporate bribery and
kleptocracy.
Throughout the history of the world, predominantly in the western
world until now, corruption of these sorts were found in unexpeced places.
In the 16th century, pirates were plundering in the Caribbean, but little
corruption was actually found between these pirates and the government.
The big player at this time was the church; "Some, as landlords, oppressed
the local population with exorbitant rents." (britishheritage.com). The
protestant church had as much power as the government back then, and the
things they controlled included the likes of property, taxes, and other things
that would nowadays would be controlled solely by the government. This
was the first case of a kleptocratic religious group, and it went on for
centuries before the 16th century. In the late 16th century, however, these
groups were being abolished. Monarchies still created acts and laws, so they
had say at this point in what the church could and couldn't do. During the

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reign of Henry XIII, this was done with extreme aggression, and every
religious building was closed after five years.
Efforts to resolve corporate bribery have been made by governments
of many nations, and as of late, many nongovernmental organizations such
as Transparency International. Transparency International is a group that
monitors political corruption around the world, and many of their cases deal
with corporate bribery and kleptocracy. Though in the past few years,
governments like that of Canada have made many anti-corruption laws, even
Transparency International has questioned them; "Transparency
International... questioned the fairness of the new rules." (Tedesco, Financial
Post). Unfortunately, this is the opposite on the other side of the world,
which is much worse. The only efforts have been to stop particular cases
such as that of Hosni Mubarak in Egypt, but no new acts have been carried
out as of yet, which is one of the reasons that Transparency International
exists.

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

Christian Stepanek

Expert
One of the most significant ongoing examples of a kleptocratic
government is that run by Vladimir Putin in Russia. Many have critisized this
government, but none as profusely as Karen Dawisha.
Karen Dawisha is a professor of political sciences and an expert/scholar
in Russian politics, and is no stranger to the word kleptocracy. She works at
the University of Miami in Ohio, located in Oxford, in the faculty of Political
Sciences and the director of Russian and Post-Soviet Studies. Although her
studies are not specific to any one thing in this category, she has a certain
passion for a certain part of the Russian political system. Although this may
seem almost like an expert's case study rather than an expert's view on
corporate bribery and kleptocracy as a whole, this does reflect the same kind
of kleptocratic governments around the world.
Dawisha recieved her PhD "from the London School of Economics in
1975 and taught at a number of British and American universities before
coming to Miami" (Dawisha), and started her career in what she was made
famous for. She not only made a career in the Russian studies, but was also
part of a project on the silk road, a series of black market trading routes
across Eurasia that in recent years has specialized in drugs. This can link to
a form of kleptocracy know as narcokleptocracy, or government funding
directly linked to the drug trade.
Karen Dawisha has written multiple books on the issues of kleptocracy
in Eurasia, particularly in Russia. Her publications add up to twenty three
and each one of them provides great insight on this issue in developing and
developed countries. One of such books is titled Putin's Kleptocracy: Who
Really Owns Russia? This book made the biggest impact of them all and
covered subjects little known to the general populous in a way that had not
been done before. It directly linked Vladimir Putin to the billionaires of
Russia, which he tops the list of, as they are all connected to him either

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through friendship or through the K.G.B., which Putin served on before

getting into politics.
The teachings and publications of Karen Dawisha have lent an insight
of the governments of the world and their negative acts fueled by the greed
of their officials. She continues to spread the word via these media and
supports messages of transparency and anti-corruption, and even went on a
trip to the silk road to document it.

Role of Control
When considering the role of control in corporate bribery and
kleptocracy, it is hard to narrow down who has it, who needs it, who cares,
and who should care. This being said, one must first figure out what 'it' is. In

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

Christian Stepanek

this case, the 'it' is the money that flows through the deals made and ends
up in the wrong hands, or more appropriately, the wrong pockets.
The people who have this money are the government officials and their
associates. There is a long list of individuals who are inclided in this group:
Former Indonesian President Suharto ($15 billion $35 billion)
Former Philippine President Ferdinand Marcos (at least $10 billion by
1986, equivalent
to about $21.6 billion in 2014 dollars)
Former Congolese President Mobutu Sese Seko ($5 billion)
Former Nigerian Head of State Sani Abacha ($2 billion $5 billion)
Former Yugoslav President Slobodan Miloevi ($1 billion)
Former Haitian President Jean-Claude Duvalier ("Baby Doc") ($300
million $800
million)
Former Peruvian President Alberto Fujimori ($600 million)
Former Ukrainian Prime Minister Pavlo Lazarenko ($114 million $200
million)
Former Nicaraguan President Arnoldo Alemn ($100 million)
Former Philippine President Joseph Estrada ($78 million $80 million)
The Russian president Vladimir Putin is alleged to be the "head of the
clan", whose assets
are estimated at 130 billion.
Sources have also shown that Egyptian President Hosni Mubarak stole
up to $70 billion.
(Wikipedia, Kleptocracy)
These leaders found ways of cheating the system to get the money that they
want, but that they do not deserve nor need.
The people that need it are the people who were robbed in the first
place; the people who need it are the citizens. The money made in
corporate bribery and kleptocracy is taken from things like taxes or other
government fees and fundkng that notmally would go into running the
country's infrastructure, funding events, and just giving back to the
community. They need it because every time it is taken from them, their
country falls slowly out of line with the rest of the world and takes longer to
develop into what it could be. If it was given back to them, the country

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would build a sturdy structure and order to thrive upon, and the way of life
would be as good for them as it is for the government.
Unfortunately, the only people who seem to care about this are the
people who are 100% directly effected by it. These are the people who live
in nations where their leaders are kleptocratic and/or recieve money from
corporations who are not at all interested in the rest of the population.
However, every person on Earth should care because business and
government relations are what what run society and how it functions. If the
president of a middle eastern country started accepting bribes from
American companies in turn for shares in oil or from gangs in turn for the
international trade of drugs, that would limit that country's ability to grow
economically and effect the relations that even developed countries have
with them in terms of trade. Any disruption in the trade that countries rely
on between each other such as that can seriously bring down the economy
of any country directly or indirectly involved.

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Christian Stepanek

Logic of Evil
Although this is an evil that seems like it would have no logical thought
process behind it, the logic of evil still does apply. The people committing
the evil are the government officials themselves. They steal money from the
country or accept it for malicious purposes, and it leads to unrest, but there
is a pro/con process that must go through their minds.
In kleptocracy, for the government official, he/she feels like royalty
with the amount of power that he/she have been given, and it can get
worked into his/her brain. In every other aspect but politics, the more
powerful people get more money, often because they deserve it. Even in a
monarchy, although the monarch dors not deserve the wealth or power, the
individual is given more because of the decisions that he/she must make.
Government officials now make more and harder decisions and so they
believe that they deserve much more than the businessmen who do not do
much work and are still billionaires.
In corporate bribery, the evil is committed by both the government and
the corporation. The logic behind this evil is the simple concept of mutual
benefit. The government recieves a large sum of money that it can use for
whatever desired purpose, and the corporation can flexibly do as they please
to boost their business and grow their market. This lets the government
grow and the corporatikn grow, but they do not realize that under the
economic shade they create, nothing else can grow.
Not only is this issue effected by politics, but practically is a part of
politics. The rules of economics would have corporations and governments
believe that when there js a mutual benefit, both the participants grow and
gain better ways of life. This message is told, in a way, in media and even
school as it teaches respect, but at this level, this respect for eacb other

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comes with disrespect and ignorance for all the others. As mentioned
earlier, governments can influence other governments, and the logic of evil
is no exception. When one government can get away with it, why can others
not? Finally, the governments and corporations have the right to do business
in a way, and this is not horribly different from those kinds of business
affairs. Rather than paying through certain taxes, corporations pay up front
and get a return on investment seen nowhere else in business.
The logic of evil applys very much to this issue and is only built up by
governments, media, rights, and economics. It is the sole reason that
anyone would think of doing this and why it still happens today.

The Kleptocracy of Putin's Russia

(See Appendix 1)
Russia is a large and powerful country with great international
influence, as seen throughout history. Their current president, Vladimir Putin,
is seen almost as a rock star to his people as he has brought many good
changes to the country. Although he is a significant figure, he is still a
humble man, according to himself. Putin would be seen by almost all as a
good leader if it was not for one thing: his net worth.
Most nations require their leaders to send out annual reports on their
incomes and worths, including Russia. However, when Putin is asked to do
so, the outcome seems lower than expected. The statistics suggest he is a
humble man devoted to his country, but he does not appear that way. He
has been seen wearing watches worth nearly $150,000 US, and living in a
large mansion worth around $1 billion US. Add his expensive cars and
yachts, the nineteen other mansions he has access to, and his line of private
jets, and his way of life does not reflect his net worth. In fact, it is estimated
by experts of Russian studies that his net worth is actually around $70 billion
US. Putin claims that he only makes around $150,000 US per year, and
these statistics do not make sense together.
(http://www.bustle.com/articles/76861-vladimir-putins-salary-is-150000-peryear-he-claims-which-is-peanuts-by-russian-politician-standards)
In the years of Vladimir Putin's first presidency, 2000 to 2008, he was
accused of corruption because of these findings, but his glamourous lifestyle

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is still displayed now in his second presidency, which has ran from the
seventh of May, 2012. Even though Russians mostly favour him in elections
and he has raised their standards as a country, he is still the third richest
man on Earth.
The exact ways of how he accumulated this money are still not known
for certain, but researchers know why he has been able to hide it so well.
Vladimir Putin's plans for the future involved the KGB, which was an unusual
goal. Though they were known for their brutality, Putin respected them and
ended up working for them in East Germany for some time. During his work
in the KGB, he made many ties to other members. After rising to the rank of
Lieutenant Colonel, he retired and used his connections to find work in the
government. Years later, he became Prime Minister and later President.
Because of his connections and quick rise to power, Putin has created a
clan that is worth almost $200 billion US; the same amount of money that
Muammar Gaddafi embezzled from oil. Evidence of such a group exists, as
nearly all on the list of the 100 richest Russians have connections to the
government through friends or had connections to the KGB in some way, and
this list rarely fluctuates. It has been claimed that Putin uses cronyism.
Many of his former KGB comrades and loyalists are heads of state
corporations. The Prime Minister, another friend of Putin's, had Judo partners
in the mid-1990s who were involved in private business and have all
prospered under the leadership of Putin; "these estimates are largely based
upon Putins ownership of 37 percent of oil company Surgutneftegaz, 4.5
percent of Gazprom, and at least 75 percent of
Gunvor."(http://www.inquisitr.com/1905728/vladimir-putins-net-worth-in2015-higher-than-bill-gates-russia-reduces-salaries-amidrumors/#gYvh4rARt3X5zj7i.99)
Unfortunately, Vladimir Putin has received attention from the media
and organizations for other reasons. He is known for creating laws that make
self expression hard and for belittling the LGBT community. This is
unfortunate because although it is an important matter, it has drawn too
much attention from Russia's corrupt government. Putin has done many
publicity stunts to draw more attention, and has succeeded in this even with
the most respectful of organizations. (See Appendix 2) This has impacted

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Russia greatly as it has caused a large gap between the upper and lower
classes, almost no middle class, and other issues that make Russia still
considered a developing nation.
Solutions are being explored by experts in Russian studies and
researchers, but so far, no action has been taken by organizations to fix the
issue. Attention must be brought to NGO's and to governments that have
strong relationships with Russia. Due to their presence in world meetings
and organizations, addressing the issue directly with Putin is not difficult, but
must be done carefully considering how Putin reacted in the recent events in
Ukraine.

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

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Panama: a Narcokleptocracy
(See Appendix 3)
Narcokleptocracy is a type of kleptocracy where governments gain
money through the trade of illegal drugs. This has been seen in multiple
countries, but none so much as Panama. The leader that brought Panama to
being this way is the former military leader Manuel Noriega, who, in the
1980s, stole money from the government and engaged in the trade of
cocaine. This drug trafficking fueled the already strong presence of drug and
gang violence in Latin America, especially in Colombia.
Noriega's crimes sprouted to France, as well. He laundered money by
investing $3 million US into three luxury apartments in Paris. His family was
involved in this too, as his daughter, Sandra, served as General Consul to
Panama in France, aiding him in his efforts.
The United States turned their attention away from the situation until it
was necessary for them to be involved. In 1989, the US invaded and
captured Noriega, who has since served multiple sentences in the US,
France, and Panama for money laundering, drug trafficking, violations of
human rights, and murder.
Today, Manuel Noriega is in Panama, but is in prison and has no power
at all. Still, he has left a significant footprint on the country. Panama is
heavily dependant on the service industry, which was the sector most
effected by his narcokleptocracy. The industry remains a centre for drug
trafficking and trade both within the country and in neighboring countries.
This now is a part of how Panama's economy is structured, so their economy
is indirectly dependant on narcotics.
Panama is far better today than it was during Manuel Noriega's time in
power, but it is far from perfect. "So has Panama genuinely moved from a
'narco-kleptocracy' to a peaceful and orderly democracy in just 25 years? 'It's
a difficult question to answer,' says Prof Orlando Perez, of Central Michigan
University."( Corruption caused by these events is still one of the biggest
issues that Panama's government and people must face. At this point in
time, the best solution is for organizations such as Transparency International

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that aid in fighting corruption to help. Also, with one of the fastest growing
economies in Latin America given to the control of the new leaders, help is
needed to stabalize the government and create stronger foreign relations.

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Corruption in Mali
(See Appendix 4)
Mali is a small developing nation in the sub-saharan northwest of
Africa. It has been subject to raubwirtschaft colonialism, terrorism, and
corruption of military and government. However, these problems are,
mostly, problems of the past. Mali is a relatively peaceful country, and the
problems they face today are more about the corruption of both the public
and private sectors. Specifically, the issues are corporate bribery to win
contracts, and money from foreign aid being lost.
Corruption and impunity at every level of the state, but especially at
the top, destroyed
the army, undermined government institutions
and persisted unchecked under the former
president, whose
ouster in a military coup last year created a disarray that the Islamists
capitalized on to take over the north.
(http://mobile.nytimes.com/2013/08/22/world/africa/for-malis-newpresident-corruptionissue-lingers.html?_r=0&referrer=)
From information gathered in just one quote like this, one can understand
how severe a small amount of corruption can be for such a small nation.
The northern region of Mali is the most undeveloped region, and efforts
have been made to help it, but they have not been very successful. Officials
are promised $4 billion US from outside sources, and they have received
more before, yet still Mali remains the fifth least developed nation in the
world. It has been a "donour favourite" for quite some time, but the money
seems to dissappear. Most of this money, along with four to five percent of
the national budget is lost each year due to mismanagement, fraud,
embezzlement, kickbacks, and all sorts of other forms of corruption. This
money goes to Mali's government agency officials, who all make thousands
of dollars over their legal salary limit, and the families of whom receive equal
shares. Nepotism is a term often used for the military and government in
Mali, and it seems as though the corruption of elections, the corruption of
promotions, and the corruption of national development are linked.

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Large companies in Mali have reported needing to pay significant

bribes to the government so that they may import and export. Moreover,
they are expected to pay fees and more bribes as they transport goods
across the border. The government also demans facilitation fees in order for
all people to use normal services like telephone or water, which is added to
the price of the service itself.
Mali's judiciary branch is not stable nor good, so many agencies and
officials are able to carry out these actions and be worth much more than
they should be without fear of interference from the higher government
officials or the military. This impunity is blatant and those involved in te
corruption can even admit to their crimes without consequence, as some
companies have admitted to bribing so that they can win contracts or so that
the government can favour them in their decisions.
Anti-corruption activist parties and organizations such as the African
Parliamentarians' Network Against Corruption (APNAC) within Africa have
known about the corruption in Mali for a long time and have tried to help.
The only issue is that they are not nearly powerful enough to bring change
currently. However, they can make an influence if they are helped in their
efforts or even if they are funded and left to do what they feel is suitable.
APNAC has been recognized by the United Nations Development Programme
(UNDP) for their efforts in making the corruption of Mali better known to the
public. More support from larger organizations like the UN will help Mali
stabilize their judiciary branch and fight the corruption of both the public and
private sectors so that it, as one of the African nations with the highest GDP's
use its assets to grow into a developed nation.

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Christian Stepanek

International Organizations
There are many nongovernmental and intergovernmental organizations
that are currently working to bring transparency in countries that have have
high amounts of corruption and to maintain transparency in countries that
are no longer corrupt. Many of these organizations work specifically in one
country, such as the Korea Independant Commission Against corruption or
the Anti-Corruption Commission of Namibia, but there are international
organizations.
Transparency International is an international nongovernmental
organization that deals with cases of political and economic corruption in
both developed and developing countries. Transparency International was
founded in 1993 as a movement to change the way governments and
businesses interact with the public. They are currently active in more than
100 countries and have successfully created anti-corruption movements and
commissions in numerous places worldwide. Many countries are now
creating new laws against corruption. They also help companies who engage
in corrupt behaviour to be more transparent, and they have successfully
prosecuted many government officials such as Husni Mubarak.
One of Transparency International's current projects is called "Unmask
the Corrupt". This is a general movements that does not target a specific
country or area, but targets the relations beween governments and
corporations and brings their findings to the public.
The corrupt should be brought to justice and punished. Citizens have a
right to know

whos cheating the system. We want the leaders of

the worlds biggest economies the

G20 to publish lists of the

real owners of all companies, and to make it harder for the

corrupt to

travel internationally and enjoy their ill-gotten gains. (Transparency

International)
This project along with the others that Transparency International are
working on are focusing on gaining the attention of not only citizens, but
International think-tanks and governments to work with their allies and

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Christian Stepanek

abolish corruption. They strongly believe and have even proven that
kleptocratic governments and bribing corporations inhibit a country from
expanding its economy and becoming more politically stable and strong.
Another organization that fights against corruption is the International
Anti-Corruption Academy. This one is different from any other organization,
however, and is starting a revolutionary new way to stop corruption that
other types of movements can and should follow. This organization literallly
is an academy that provides seminars and training in anti-corruption as well
as a master's programme. It is meant to train people to become future
leaders in the anti-corruption movements. It is based in Laxenburg, Austria,
and was made by the United Nations Office on Drugs and Crimes (UNODC),
the European Anti-Fraud Office (EAFO), and the Republic of Austria, along
with a wide variety of other stakeholders. It also provides "opportunities for
dialogue and networking, anti-corruption think-tank and benchmarking
activities" (IACA). The IACA as an association is comprised of now 64 parties,
3 of which are large international organizations. They also work with other
organizations to come to solutions for issues relating to corruption around
the world, and consult with both the public and private sector as well as civil
society. They sit in with the UN, the Group of States Against Corruption
(GRECO), and the Economic and Social Council (ECOSOC). So far, everything
has been successful, however, the Academy is still young being founded in
2011, so it has not made its way into any countries in projects and currently
stands just as an assembly to discuss solutions.

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Christian Stepanek

Canadian Connection
Canada is the tenth least corrupt country in the world according to
Transparency International, and recieved a score of 81 (out of 100).
Canada's efforts against corruption make it a place that both the public and
private sectors can flourish without much complaining from the citizens, and
without illegal collaboration between the two.
The Canadian Bar Association and the Telfer School of Management at
uOttawa are working together on the Going Global Anti-Corruption Program.
This program is actually a series of day-long programs for private sector
executives in Canada to educate on Canada's new Corruption of Foreign
Public Officials Act (CFPOA).
The CFPOA is an act that Canada istituted in 1999 that is meant to
enforce law upon exexutives to stop corrupt behaviour. This act was made
as a Canadian version of the United States' Foreign Corrupt Practices Act
(FCPA) made in 1977. The act was not of large concern for corrupt
corporations as it was not strictly enforced. However, recently, due to
pressing movements of anti-corruption worldwide, Canada made
amendments to this act through Bill S-14 in 2013, that created new law
against corruption and saw the creation of a new branch of the Royal
Canadian Mounted Police (RCMP) made specifically to enforce the new law.
This bill has proved to be very effective. On May 23, 2014, Nazir Karigar
went to the supreme court of Canada and given a sentence of three years in
prison for being caught by the RCMP planning to bribe Air India. On June 4 of
the same year, three men, two from the United States, and one from Britain,
were caught by the RCMP for plots of bribery. These were the first people
arrested under the CFPOA from outside of Canada, and Canada has the
option to extradite them to Ontario for further prosecution. Recently, the
RCMP also found the science and environmental engineering giant, SNC
Lavalin, to be breaking the CFPOA. The company has reportedly been
engaging in criminal acts in their projects in Libya, a country that is known

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well to have many cases of corrupt foreign companies working inside their
borders. SNC Lavalin are to plead non-guilty at their trial.
Currently, the government of Canada is working on strengthening the
detection of corrupt executives, specifically those operating in foreign lands.
Amendments are to be made to the CFPOA, and the framework of other
governmental organizations working against corruption are being altered to
make corruption an even harder thing to get away with. These amendments
and changes as well as the detection of corrupt executives is likely to aid
more in the corruption cases of other countries, making Canada one of the
nations on the forefront of global anti-corruption movements.

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Christian Stepanek

Solutions
When it comes to kleptocracy and corporate bribery, solutions may
vary from place to place, as not only are other places different, but their
relations with each other are different. A country like Russia need not the
same aid to keep money from Vladimir Putin's personal fund as Mali needs to
fight the numerous bribes payed by corporations to the government.
In the case of Russia, the United Nations' movements against
corruption and their associates must consult with Putin to address the issue.
Putin has not ruled over Russia in a violent way, nor has he caused outbreaks
of war other than the short dispute over Ukraine which was resolved, and he
has made major improvements to the country. For these reasons, he must
not be confronted the same way as Manuel Noriega or Hosni Mubarak were
confronted. Not much is known by the public about his kleptocracy, as some
journals and books addressing the issue have been banned, so alerting the
citizens of Russia on the issue will also provide an easy and effective way to
stop Putin.
In Panama, things are starting to settle as the country breaks free from
its old ways of narcokleptocracy, embezzlement, and other forms of
kleptocratic corruption. At the moment, all foreign parties must do to aid
Panama is create strong and publicly open trade relationships. This will
stabilize the rapidly growing economy of Panama and take some of the new
power's worries away from it.
Mali, of all countries, is one of the world's nations that needs the most
aid to rid bribery from within its borders. One of the issues that must be
targeted it this area is the unrest between the nations of northern Africa.
These wars and political disputes make international relations hard for this
landlocked country. Acts similar to those in Canada must be instituted and
laws must be enforced upon the corporations in Mali and outside of Mali who
operate there. This will ensure the rapid decrease in corruption and allow
Mali to gain enough power to fight against the unrest around it.

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In developed countries, nongovernmental and intergovernmental

organizations must work alongside international think-tanks to create
common practice of enforcing anti-corruption laws. In many cases, though,
one of the bestsolutions is to do nothing. Movements against corruption are
sweeping across the globe quickly, so letting countries embrace these
movements themselves without forcing our own ways of dealing with
corruption upon them will allow a peaceful and smooth transition to a world
without kleptocracies or bribery.

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Christian Stepanek

Religion and Spiritualities

Throughout time, religion has been one of the most influential factors
in kleptocracies. From the days of Christian theocracies to colonialists
bringing Christianity to Africa, and from Islamic empires spreading across
Arabia to Islamic leaders taking their countries' money in pan-Arabist
movements, religion brings people to power without judgement, then the
power corrupts their ways. Religious leaders are often seen as the bringers
of peace and the prosperity of the gods, but they only end up using this to
justify their corrupt actions.
In the fifteenth century, English churches had power over the people,
and charged them with huge taxes, and since many acted as landlords, they
also charged high amounts of rent. This continued for many years, until
Henry VIII violently took away the power from the church. The church still
had some power, though, as England was an entirely Christian kingdom.
When Henry VIII wanted a divorce, for example, the Pope was the only
person who could do it, and he refused all negotiations. The church
maintained a strong presence in law until Henry finally seized control of it,
leading to the dissolution of England's monasteries. Many other cases like
this are known to have happened in the past. The Islamic theocracy that was
the Ottoman or Turkish Empire captured much land and forced their law,
based on the Qu'ran, onto those whom they ruled over. This law put the
leaders in a position that made them able to have as much money as they
pleased, leaving less for the people.
Colonialism ties into kleptocracy very well, and there is a term for the
two combined: Raubwirtschaft. This term is German for "robber economy",
and is used to describe colonies who's leaders' (the colonialist leaders) only
reason to be there is to plunder and take all the land's resources as their
own, leaving no supplies or money for the inhabitants. These sorts of
governments were very apparent in the time of Africa's colonial period, but
not as much today. However, it still exists today, as 16 regions of the world
are still considered colonies without their own form of government, and some

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Christian Stepanek

are not treated well by their governing nation. One of these is the last
colony of Africa, Western Sahara. There has been a dispute between
Morocco and the Polisario Front (a group that claimed independence from
Spain, supported by Alegeria) for who should own it. Spain once owned it
but because of requests by the United Nations, they gave it up around the
timeof the Cold War. Western Sahara as well as Morocco, Algeria, and
Mauritania (the country to the east and south of Western Sahara) are
predominantly Muslim, and being in the northern part of Africa, are
accustomed to uprisings, wars, religious attacks, and corruption. Al Qaeda
has entered some of their refugee camps before for recruitment or maybe
also for political power, as this area is very politically unstable. Funds going
to these refugee camps are also being wasted on either pointless purchases,
or going straight to the officials. Tindouf, a large Algerian town on the border
of Western Sahara, recieves supplies and money for refugee camps, but they
are stolen by Polisario and other religious groups.
Siphoned aid is only the tip of the iceberg: Polisario smugglers also
transport African

migrants northward toward Europe, and jihadis and

weaponry southward from Libya,

through Algeria, and across the

increasingly unstable Sahel. Counterterror analysts say

that AQIM

now recruits in Polisario camps. (Sahara Development)

Jihadist attacks are on the rise in this area, and the groups that the Jihadis
come from are being funded, even if unintentionally, by the government in
that area and by organizations from other countries who are trying to help
fight against them. Due to nearly 100% of the population being Sunni
Muslim, there are not any known religious groups that are fighting against
the others or against corruption in Western Sahara. The population is also
only about 300,000, most of which is located in camps or in very small
towns, and a large portion of which are nomadic bedouins, so there are no
notable organized groups other than the Polisario Front, but it is outlawed in
all areas controlled by Morocco, which includes all of the north and the coast.

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Christian Stepanek

Appendices
Appendix 1

Vladimir Putin living his luxurious life on one of his many yachts.

Appendix 2

Integrated ISU - "Show Me The Money!" (Corporate Bribery & Kleptocracy) by

Christian Stepanek

The Russian President loves to release photos of him shirtless. It definitely draws our
attention.

Appendix 3

Manuel Noriega after being seized by the United States.

(http://latimesblogs.latimes.com/.a/6a00d8341c630a53ef01675ea12c56970b-pi)

Appendix 4

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Christian Stepanek

A comic highlighting the attitudes of corrupt officials in Mali.

(http://www.journaldumali.com/images/articles/34/1286462065456.jpg)

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