      Brookings / AAA&s / WPF N                      RobeRt I. 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Robert I. Rotberg Editor 00 0328-0 fm.qxd 7/15/09 3:42 PM Page iii about brookings The Brookings Institution is a private nonprofit organization devoted to research, education, and publication on important issues of domestic and foreign policy. Its principal purpose is to bring the highest quality independent research and analysis to bear on current and emerg- ing policy problems. Interpretations or conclusions in Brookings publications should be understood to be solely those of the authors. Copyright © 2009 World Peace Foundation and American Academy of Arts & Sciences world peace foundation P.O. Box 382144 Cambridge, Massachusetts 02238-2144 american academy of arts & sciences 136 Irving Street Cambridge, Massachusetts 02138 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission in writing from the Brookings Institution Press. Corruption, Global Security, and World Order may be ordered from: Brookings Institution Press, c/o HFS, P.O. Box 50370, Baltimore, MD 21211-4370 Tel.: 800/537-5487 410/516-6956 Fax: 410/516-6998 Internet: www.brookings.edu Library of Congress Cataloging-in-Publication data Corruption, global security, and world order / Robert I. Rotberg, editor. p. cm. Includes bibliographical references and index. Summary: “Discusses global ramifications of deeply embedded corruption by criminals and criminalized states. Explores trafficking issues—how nuclear/WMD smugglers coexist with other traffickers. Examines how corruption deprives citizens of fundamental human rights, assesses the connection between corruption and the spread of terror, and proposes remedies to reduce and contain corruption”—Provided by publisher. ISBN 978-0-8157-0329-7 (pbk. : alk. paper) 1. Political corruption. 2. Transnational crime. 3. Security, International. 4. Nuclear nonproliferation. I. Rotberg, Robert I. II. Title. JF1081.C6733 2009 364.1'323—dc22 20090208 9 8 7 6 5 4 3 2 1 Printed on acid-free paper Typeset in Minion Composition by Cynthia Stock Silver Spring, Maryland Printed by R. R. Donnelley Harrisonburg, Virginia 00 0328-0 fm.qxd 7/15/09 3:42 PM Page iv Preface vii 1 How Corruption Compromises World Peace and Stability 1 Robert I. Rotberg 2 Defining Corruption: Implications for Action 27 Laura S. Underkuffler 3 Defining and Measuring Corruption: Where Have We Come From, Where Are We Now, and What Matters for the Future? 47 Nathaniel Heller 4 Corruption in the Wake of Domestic National Conflict 66 Susan Rose-Ackerman 5 Kleptocratic Interdependence: Trafficking, Corruption, and the Marriage of Politics and Illicit Profits 96 Kelly M. Greenhill 6 Corruption and Nuclear Proliferation 124 Matthew Bunn 7 To Bribe or to Bomb: Do Corruption and Terrorism Go Together? 167 Jessica C. Teets and Erica Chenoweth v Contents 00 0328-0 fm.qxd 7/15/09 3:42 PM Page v vi Contents 8 Corruption, the Criminalized State, and Post-Soviet Transitions 194 Robert Legvold 9 Combating Corruption in Traditional Societies: Papua New Guinea 239 Sarah Dix and Emmanuel Pok 10 The Travails of Nigeria’s Anti-Corruption Crusade 260 Rotimi T. Suberu 11 The Paradoxes of Popular Participation in Corruption in Nigeria 283 Daniel Jordan Smith 12 Corruption and Human Rights: Exploring the Connection 310 Lucy Koechlin and Magdalena Sepúlveda Carmona 13 Leadership Alters Corrupt Behavior 341 Robert I. Rotberg 14 The Role of the Multi-National Corporation in the Long War against Corruption 359 Ben W. Heineman, Jr. 15 The Organization of Anti-Corruption: Getting Incentives Right 389 Johann Graf Lambsdorff 16 A Coalition to Combat Corruption: TI, EITI, and Civil Society 416 Peter Eigen 17 Reducing Corruption in the Health and Education Sectors 430 Charles C. Griffin 18 Good Governance, Anti-Corruption, and Economic Development 457 Jomo Kwame Sundaram Contributors 469 Index 477 00 0328-0 fm.qxd 7/15/09 3:42 PM Page vi Global security and world order are threatened as never before by myriad sources of instability. Foremost is the collapse of macroeconomic stability and fiscal certainty. Next, possibly, is the lack of concord among the powers of the world, with Russian, Chinese, and American competition and mutual suspicion preventing the confident resolution of a number of outstanding and intractable subsidiary issues. Some of those concern the spread of nuclear weapon capacity and the resilience of terror and terroristic movements. Addi- tionally, tyranny continues to stalk the globe, especially in Africa and Central Asia and parts of Southeast Asia and Latin America. As the chapters in this book show, corruption is at the very center of all of these contentious global anxieties, fueling their fury and magnifying their intensity. This book, in novel and path-breaking ways, explores the enabling ties between corrupt practice and security, corrupt practice and human rights and development, and cor- rupt practice and the maintenance of tyranny. It also provides abundant stud- ies of key egregious national examples. This book emerged out of rich conversations at the American Academy of Arts and Sciences stimulated, originally, by Robert Legvold’s deep knowledge of Russia and the Russian near abroad. The Academy and its Committee on International Security Studies, the Program on Intrastate Conflict at the Kennedy School of Government, and the World Peace Foundation subse- quently organized a series of heuristic meetings in 2007 and 2008 to discuss modern ramifications and implications of deeply embedded corruption, espe- cially as it posed novel (or at least hitherto largely unexplored) threats to world order. This book is the result. vii Preface 00 0328-0 fm.qxd 7/15/09 3:42 PM Page vii This resulting volume builds on essays originally prepared for discussion at one or more of the joint meetings. Each has been revised multiple times; I am grateful to my fellow contributors for the painstaking care with which each contributor approached the tasks of writing and revision, and—with equal fervor—to Emily Wood for her assiduous attention to the daunting details of copy-editing, fact-checking, and marshalling so many authors and subjects. The result is a tribute to the contributors and to her. The authors and I are also grateful to Alice Noble and Elizabeth Huttner at the Academy for hosting us so well (and for Martin Malin’s guidance earlier), and for Katie Naeve and Vanessa Tucker, of the Program, for keeping us focused and well-organized during the long months from inception to com- pletion. Charles Norchi participated in our discussions and made lasting con- tributions to this book’s architecture. The sponsorship at the Academy of the Committee on International Secu- rity Studies, chaired so ably by Carl Kaysen and John Steinbruner, enabled this project and book to become a reality.I appreciate the committee’s confidence and backing throughout the process of testing initial ideas and maturing them into a completed product. The committee wisely encouraged us to embrace corruption in all of its security facets. The World Peace Foundation, led by Philip Khoury, its chair, and other trustees also strengthened the conceptual foundations of the project and even- tual book. I am appreciative, too, for the continued backing for this and other projects of Graham Allison, director of the Belfer Center for Science and International Affairs at the Kennedy School of Government, and his and my other colleagues within the always intellectually engaged and lively Center. Robert I. Rotberg March 1, 2009 viii Preface 00 0328-0 fm.qxd 7/15/09 3:42 PM Page viii Corruption, Global Security, and World Order 00 0328-0 fm.qxd 7/15/09 3:42 PM Page ix [...]... overwhelm the global practice and threat of corruption Notes 1 Ari Adut, On Scandal: Moral Disturbances in Society, Politics, and Art (New York, 2008), 12 9 17 4 2 George Eliot, Felix Holt, The Radical (New York, Crowell edition, nd, but circa 18 70; orig pub London, 18 66); Charles Dickens, Little Dorrit (London, 18 55) This novel, by Dickens, was first published as a serial novel between 18 55 and 18 57 Although... twothirds of the way down, at 12 1 of 18 0 It also was among the bottom ten of forty-eight African countries in the 2008 Index of African Governance, to some extent because of its poor ratings on corruption, rule of law, security, and other critical categories of governmental performance. 21 Suberu explains why and how Nigeria’s “unprecedented” official campaign against corruption since 19 99 has essentially failed,... items and other contraband, and in humans About 1 million women may have been 14 Robert I Rotberg spirited out of Russia to the West between 19 95 and 2005, a proportionally greater number from Ukraine in a comparable time period, and fully 10 percent of Moldova during the 19 90s Russia also smuggles wildlife and animal parts supplied by poachers and corrupt security officials and has decimated the sturgeon... Development: A Cost-Benefit Analysis,” American Political Science Review, LXI (19 67), 417 –427 For additional definitions and ways of understanding the different definitions, see Peter John Perry, Political Corruption and Political Geography (Brookfield, VT, 19 97), 12 18 4 James C Scott, Comparative Political Corruption (Englewood Cliffs, 19 72), 67 5 Transparency International-Kenya,“Kenya Bribery Index 2008”... corporations to promote tough security cultures within their own domains, improve controls in and at sensitive installations, and adhere to the spirit and letter of UN Security Council Resolution 15 40, which obligates member states to establish domestic controls to prevent proliferation of weapons and their means of delivery Addi- How Corruption Compromises World Peace and Stability 11 tionally, Bunn calls... TI ranked Malawi 11 5 of 18 0 countries That means that most citizens are still marginally enfranchised and subject to corrupt abuse that undercuts How Corruption Compromises World Peace and Stability 19 their economic and social rights Where citizens fail to realize their full rights to life, to education, to health, and so on, and where that failure is in some measure attributable to corruption, Malawi... practices prevail? Given that we can find corruption in almost every nation, and that TI’s Corruption Perceptions Index annually ranks 18 0 countries according to their perceived levels of corruption, both of those questions may be unhelpful Indeed, of the 18 0 countries ranked, a good 12 0 exhibit worrying levels of corruption But hard numbers—actual numbers of corrupt payoffs within a given country, actual numbers... treatment, and the overall cost of “doing business” each had its defined price in Russia and beyond In the first four years of this century, the average bribe increased from the equivalent of $10 ,000 to $13 6,000 .17 In Russia, as in the globe’s systemically corrupt states, local officials routinely collaborate with predatory business interests, are “indifferent to the law and property rights,” and are... corruption Corruption, Eigen and TI emphasized, was a systematic and recognized way to undertake business by most European multi-national corporations It was also tax deductible, legal, and condoned (The U.S Foreign Corrupt Practices Act of 19 77 had uniquely prohibited the bribing of foreign officials.)29 The modern concern with and assault on corruption begins with Eigen and the founding of TI The 19 99 OECD... within a given country, actual numbers of corrupt “incidents,” however 6 Robert I Rotberg defined, and so on—are impossible to quantify The World Bank estimates that globally $1 trillion is paid each year in bribes, but that is a ballpark figure .10 The numbers of corrupt persons brought to trial is not particularly helpful, except possibly in Singapore We know that various venal developingworld leaders have . Press. Corruption, Global Security, and World Order may be ordered from: Brookings Institution Press, c/o HFS, P.O. Box 50370, Baltimore, MD 212 11- 4370 Tel.: 800/537-5487 410 / 516 -6956 Fax: 410 / 516 -6998. NaíM        Corruption, Global Security, and World Order 00 0328-0 fm.qxd 7 /15 /09 3:42 PM Page i 00 0328-0 fm.qxd 7 /15 /09 3:42 PM Page ii Corruption, Global Security, and World Order World. 1, 2009 viii Preface 00 0328-0 fm.qxd 7 /15 /09 3:42 PM Page viii Corruption, Global Security, and World Order 00 0328-0 fm.qxd 7 /15 /09 3:42 PM Page ix 00 0328-0 fm.qxd 7 /15 /09 3:42 PM Page x 1 Corruption