We must fight to end destructive corruption

The outcry over the so-called Panama Papers has again focused attention on the tides and currents of our global financial system. 

Whether those named in the papers are breaking the law is not necessarily the point. What is of concern is that there appears to be enough caves beneath our financial high seas for vast amounts of treasure to be hidden from view. 

Some of this money comes from illicit sources. Five years ago, the United Nations’ Office on Drugs and Crime’s Estimating Illicit Financial Flows publication showed that money laundered from criminal activities amounted to around $1.5 trillion annually. That is probably a conservative estimate.  

But it is not just the illicit money that washes through our financial systems; corruption is also harming financial trust and government credibility.

This endemic crime does immeasurable harm to our societies, especially the weak and vulnerable. 

Money diverted from governments can prevent schools and hospitals from being built, as well as desperately needed infrastructure such as roads. 

This should dispel the entirely false view that corruption is a victimless crime.

Victims are legion and they include millions of vulnerable women, children, and men; individuals who suffer the most when corruption spirits away funds meant for essential services.   

Corruption is modern proof of the old children’s nursery rhyme, For Want of a Nail. In the poem, the lack of a nail led inescapably to the loss of a kingdom. Corruption pursues the same frightening logic.

However, corruption is not measured by lost kingdoms or lives or even irreparably damaged communities; it is measured in generations of missed opportunities and hopes made barren.

Corruption’s ability to undermine societies and hinder development is specifically recognised in the 2030 development agenda under Goal 16, which calls for substantial reduction in corruption and bribery. 

The inclusion of the private sector in fighting corruption is essential. Governments cannot undertake the heavy lifting on their own. There is a desperate need for close collaboration. 

HOW TO DO IT
Fortunately, the private sector seems to be moving in the same direction. Businesses realise that the fight against corruption is a win-win situation: Business thrives where laws are clearly defined and fairly applied.

To help, I suggest four key actions: First, countries need to create the laws necessary to give teeth to the UN Convention Against Corruption (UNCAC) at the local level.

This is a universal legal anti-corruption instrument that is driven by innovative anti-corruption standards applicable to both the public and private sectors.

Second, criminal justice institutions must be given the authority and independence to investigate, prosecute, and adjudicate corruption offences. 

Third, cooperation must drive everything that we do. Finally, there is a need to promote asset recovery mechanisms to identify, seize, and return the proceeds of crime. 

No funds stolen from any developing country are to be left lying in a foreign bank or tax haven. Everything must be returned. 

We cannot do this alone. The private sector can support this work. Its role is to continue turning the much-desired level playing field into a legislated playing field.

UNCAC can help. Its unique selling point is its reach and global credibility.

Until recently, people accepted corruption and bribery as part of life. Now they reject it. However, it has not been tamed and can come back if we let things slide.

The United Nations is seeking to help build better lives and greater equality, while businesses are seeking integrity, accountability, and transparency.

Let us combine our work to ensure that there are fair markets in fair societies.

Mr Fedotov is the executive director of the UN Office on Drugs and Crime.