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Fighting Corruption Seen as Key to Cutting Poverty in Americas

Transparency International chair says essential goods diverted by corruption

Posted: November 30, 2006

Uruguay scored 6.4, sharing rank #28 with Malta and Slovenia, and in second place to Chile in Latin America.
Washington – Reducing corruption in the Americas is critical to the region’s long-term stability and to eliminating poverty, the chair of the nongovernmental international anti-corruption organization Transparency International said November 28.

In her remarks to the Organization of American States (OAS) in Washington, Huguette Labelle said there are between 220 million and 240 million people in Latin America living in poverty. Corruption makes these poor people poorer because they have to pay and sometimes offer bribes for basic services that should be free, she said.

"Essential goods and services – food and medicines – are often diverted by corruption, leaving people desperate and struggling to obtain food, education and medical care for themselves and their children," Labelle said.

Fighting corruption is a prerequisite to reducing poverty and increasing economic development, Labelle said. She cited data from the Inter-American Development Bank showing that about 10 percent of the Americas’ gross domestic product is lost to corruption each year.

Corrupt officials use illegal monetary transactions, opaque campaign financing, trafficking in influence, control of information and extortion for private gain, Labelle said. "As a result, public policies are seriously distorted, and resources misallocated."

Countries need a comprehensive approach to fighting corruption, Labelle said. Such an approach must involve the judicial, legislative and executive branches working in cooperation with civil society organizations and businesses. Effective, independent and accountable institutions that ensure public policies are pursued in the public interest and not for private gain are needed as well. "Most importantly, though, the people must demand accountability from their leaders," she said.

Countries must institutionalize a "culture of accountability," Labelle said. "Transparency and accountability are preconditions to the full empowerment of citizens." Public authorities systematically must provide transparent access to information dealing with public administration issues such as public contracting or public finance, Labelle said. Currently, five countries in the Americas have laws on access to information, and others are considering enacting similar laws, according to Labelle.

Democracy is a fundamental precondition for social and economic development, Labelle said, and key to fighting corruption. Labelle said the Inter-American Charter on Democracy states that "democracy is essential for the social, political, and economic development of the peoples of the Americas." Many countries have established formal democratic systems, some with new leaders elected on anti-corruption platforms. However, there are concerns about the durability of these new democracies, Labelle said.

Civil society organizations can mobilize broad public support for reforms because they are the "voice of the people," Labelle said. However, some countries have enacted or proposed laws that significantly would restrict these organizations’ activities. Transparency International is "deeply concerned about the freedom and protection of civil society and its ability to function without government interference," said Labelle. "Given the essential role of civil society in the fight against corruption, it is vital that the OAS takes a strong stand in support of civil society freedom to organize and operate without restriction."

There has been recent progress in fighting corruption in the Americas, Labelle said. "Transparency has increased considerably, reflecting the trend around the world to acknowledge its importance," she said. Business and political leaders, journalists, civil society organizations and others are recognizing the cost of corruption and pushing for reforms and monitoring progress, Labelle said.

This year’s 10th anniversary of the Inter-American Convention Against Corruption is an important milestone, Labelle said. This multilateral framework against corruption and its monitoring mechanism plays an important role ensuring that governments translate their commitments into action, she said.

In a list of recommendations issued recently, Transparency International urged leaders in the Americas to show what progress they have made in fulfilling the obligations outlined in this convention. The list of recommendations also called for parties to publish annual progress reports and enhance civil society participation. By doing so, leaders will assure citizens in these countries that they are "moving beyond words and paper and are acting against corruption," Labelle said.

Of the 30 countries in the Americas listed in Transparency International’s 2006 Corruption Perceptions Index released earlier in November, 25 scored below five on a scale of zero to 10, meaning corruption there is perceived by experts as a serious problem, Labelle said. More than a third scored below three, meaning corruption is seen as rampant. (See related article.)

Uruguay scored 6.4, sharing rank #28 with Malta and Slovenia, and in second place after Chile in Latin America.

The full text of Labelle’s remarks is available on the OAS Web site.

More information on the 2006 Corruption Perceptions Index is available on the Transparency International Web site.

For more information on U.S. policies and concerns, see Bribery and Corruption.

Michelle Austein
USINFO Staff Writer

 
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