Using Diplomacy to Integrate Anticorruption and

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US Department of State

• Using Diplomacy to Integrate Anticorruption and
• Corporate Governance
• John Brandolino
• Director for Anticorruption
• Governance Initiatives
• U.S. Department of State

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Fighting Corruption is a Foreign Policy Priority
for the U.S. Government President Bush The
United States is committed to bringing renewed
energy to the global anticorruption agenda, and
to increasing the effectiveness of the American
policies and programs that address this important
issue. Secretary Powell Committed to
fostering new synergies in the fight against
corruption that promote integrity and confidence
in both government institutions and in the global
marketplace. Recognizes that success also
requires leadership by the private sector...
US Department of State
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US Department of State

• U.S. Anticorruption Policy Goals of the Past
  Several Years
• Enhance recognition of corruptions international
  implications
• Establish internationally-accepted anticorruption
  norms and commitments
• Encourage cooperation and mutual evaluation among
  governments to implement commitments

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US Department of State

• TEN YEARS AGO
• - Corruption was loosely discussed among
  governments
• - No international anticorruption agreements
• --------------------------------------------------
  -----------------------------
• TODAY
• - All governments discuss and denounce corruption
• 143 governments attended Second Global Forum
• - At least 7 regional international agreements
  and one global convention currently being
  negotiated at the United Nations
• Europe COE, SPAI, OECD Anti-bribery

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US Department of State

• ANTICORRUPTION CONVENTIONS AND AGREEMENTS
• Different from traditional conventions
  criminalizing behavior
• Contain commitments by governments to enhance
  good governance
• RECENT US GOALS
• Good governance and institution building must go
  beyond the public sector
• Ensure good governance commitments by governments
  recognize and include commitments to enhance
  corporate good governance

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• SURVEY OF EXISTING INTERNATIONAL AGREEMENTS
• The most cited governance commitment is a
  corporate governance measure
• Governance commitments (known as preventive
  measures) fall within four general categories

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US Department of State

• (1) Integrity of Public Service
• (compensation/pension/benefits, hiring,
  promotion, standards of conduct, training,
  rotation of assignments, financial disclosure) 
• (2) Integrity of Public Budgeting, Procurement,
• and Decisionmaking
• (clear delegation, independent oversight-
  investigative- prosecutorial institutions and
  processes, judicial review, limiting interface,
  eliminating favorable tax treatment)

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US Department of State

• (3) Empowering Civil Society
• (public awareness and research, protection of
  whistleblowers, protection of victims, formal
  mechanisms for private/public cooperation, public
  access to government information, transparency of
  election activities)
• (4) Corporate Integrity
• (books and records, disqualification of corrupt
  legal persons and natural persons, standards and
  codes, protection of shareholder rights)

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US Department of State

• Where to go from here?
• U.S. Integrate Corporate Governance into
  International Initiatives (e.g. State/USAID
  Working Group, Funding for IFIs)
• Ensure Integration of Corporate Governance
  Commitments into the New UN Anticorruption
  Convention
• Governments Work Together Cooperatively and
  Constructively to Implement Anticorruption
  Commitments
• Private Sector and Civil Society Participate as
  Hammers and Examples