The Relationship Between Corruption and Protest
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The Vizcarra Era: Political Instability and Business Uncertainty in Peru
The Vizcarra Era: Political Instability and Business Uncertainty in Peru 1 ARTICLE THE VIZCARRA ERA: POLITICAL INSTABILITY AND BUSINESS UNCERTAINTY IN PERU Madrid, 28 August 2019 llorenteycuenca.com The Vizcarra Era: Political Instability and Business Uncertainty in Peru 2 In his July 28 Independence Day address to the Fujimorism-dominated Congress continuing the National Congress, Peruvian President Martin liberal reforms of the 90’s would create space Vizcarra proposed a constitutional amendment for sweeping reforms and allow Peru OECD to move general elections from 2021 to 2020. membership. These good economic prospects He did this with the specific goal of ending and high business confidence triggered an Peru’s government functionality crisis, brought investment boom, with investors encouraged on by constant disagreement between the by macroeconomic health and an excellent executive and legislative powers. “All of us must international market for Peru’s raw exports, such go,” asserted the president before a shocked as copper. House of Representatives. This announcement has left Peru’s government in an increasingly As we now know, few of these expectations were volatile state replete with uncertainty, paralyzing met. Peru’s political landscape turned volatile legislation and adversely affecting business and complex, deflating business expectations expectations. and discouraging private investment. Optimistic ideas that the “Ppkausas” and Fujimorists Although not as bombastic as other incidents, the would work together failed to stand up to the truth is that this is Peru’s most serious crisis of pressures of both history and the country’s the last 19 years. Close analysis of Peru’s political political-institutional design. -
Populism and Corruption
Transparency International Anti-Corruption Helpdesk Answer Populism and corruption Author(s): Niklas Kossow, [email protected] Reviewer(s): Roberto Martínez B. Kukutschka, [email protected] Date: 14 January 2019 This Helpdesk Answer looks at how corruption and populism interlink. First, it provides an overview of the different definitions of populism, all of which point to the fact that populism, as a political ideology and as a style of political communication, divides society into two groups: the people and the “elites”. Second, it explains how corruption becomes an inherent part of populist rhetoric and policies: populist leaders stress the message that the elites works against the interest of the people and denounce corruption in government in order to stylize themselves as outsiders and the only true representatives of the people’s interest. While the denunciations of corruption can often be considered valid, populist leaders rather than effectively fighting corruption use the populist rhetoric as a smoke screen to redistribute the spoils of corruption amongst their allies. In many cases populism even facilitate new forms of corruption. Finally, the answer uses examples from Hungary, the Philippines and the USA to show how corruption and populism relate to one another. © 2019 Transparency International. All rights reserved. This document should not be considered as representative of the Commission or Transparency International’s official position. Neither the European Commission,Transparency International nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. This Anti-Corruption Helpdesk is operated by Transparency International and funded by the European Union. -
Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1
Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1 Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1 Written by Mike LaSusa Thursday, 27 October 2016 Brazil Guatemala Elites and Organized Crime Over the past several years, both Brazil Twitter and Guatemala have been rocked by revelations of widespread corruption at the highest levels of government. Former presidents in both countries are now standing trial for their alleged roles in the respective scandals. InSight Crime Recent corruption scandals have reached the highest levels of government in Guatemala and explores some of the similarities and Brazil differences between these cases. In addition to reporting by InSight Crime and other outlets, this article also draws on a discussion InSight Crime moderated recently between Mike Allison, an expert on Central American politics who serves as an associate professor and chair of the political science department at the University of Scranton, and Matthew Taylor, an associate professor at American University's School of International Service who focuses on state capacity and corruption in Latin America and who has extensive experience in Brazil. An edited transcript of that conversation has been published here. Who was involved? Guatemala: Former Guatemalan President Otto Pérez Molina and former http://www.insightcrime.org/news-analysis/comparing-presidential-corruption-scandals-in-guatemala-and-brazil[10/28/2016 11:10:25 AM] Comparing Presidential Corruption Scandals in Guatemala and Brazil: Part 1 Vice President Roxana Baldetti were accused in June 2016 by the United Nations-backed International Commission against Impunity in Guatemala (Comisión Internacional Contra la Impunidad en Guatemala - CICIG) of leading a "criminal mafia structure that had co-opted power through the ballot box." The criminal network also allegedly included Baldetti's private secretary Juan Carlos Monzón as a key intermediary, as well as numerous other government officials and business elites. -
Combating Corruption in Latin America: Congressional Considerations
Combating Corruption in Latin America: Congressional Considerations May 21, 2019 Congressional Research Service https://crsreports.congress.gov R45733 SUMMARY R45733 Combating Corruption in Latin America May 21, 2019 Corruption of public officials in Latin America continues to be a prominent political concern. In the past few years, 11 presidents and former presidents in Latin America have been forced from June S. Beittel, office, jailed, or are under investigation for corruption. As in previous years, Transparency Coordinator International’s Corruption Perceptions Index covering 2018 found that the majority of Analyst in Latin American respondents in several Latin American nations believed that corruption was increasing. Several Affairs analysts have suggested that heightened awareness of corruption in Latin America may be due to several possible factors: the growing use of social media to reveal violations and mobilize Peter J. Meyer citizens, greater media and investor scrutiny, or, in some cases, judicial and legislative Specialist in Latin investigations. Moreover, as expectations for good government tend to rise with greater American Affairs affluence, the expanding middle class in Latin America has sought more integrity from its politicians. U.S. congressional interest in addressing corruption comes at a time of this heightened rejection of corruption in public office across several Latin American and Caribbean Clare Ribando Seelke countries. Specialist in Latin American Affairs Whether or not the perception that corruption is increasing is accurate, it is nevertheless fueling civil society efforts to combat corrupt behavior and demand greater accountability. Voter Maureen Taft-Morales discontent and outright indignation has focused on bribery and the economic consequences of Specialist in Latin official corruption, diminished public services, and the link of public corruption to organized American Affairs crime and criminal impunity. -
Preventing Systemic Corruption in Brazil
Preventing Systemic Corruption in Brazil Sérgio Fernando Moro Abstract: This essay describes the Brazilian anticorruption operation known as Operação Lava Jato (“Operation Car Wash”), its findings, and its results based on cases tried up to March 2018. Told from the perspective of the federal judge of the Thirteenth Federal Criminal Court of Curitiba, in whose court most of the Lava Jato cases have been prosecuted, this massive criminal case offers lessons that may be useful to other anticorruption efforts. Preventing systemic corruption is a challenge, but it is a necessary step for the improvement of democracy. What began as an investigation of an isolated in- stance of corruption within a Brazilian oil compa- ny expanded into an immense anticorruption oper- ation known as Operação Lava Jato (“Operation Car Wash”). This investigative operation has penetrat- ed deep within Brazil’s government and corporate elite to root out systemic state-sanctioned corrup- tion. Its criminal cases also appear to be instating new legal norms for how corruption cases are han- dled in Brazil, giving citizens hope that Lava Jato’s impact will be felt far into the future. How Brazilian prosecutors and courts dealt with this immense anti- corruption effort may provide important lessons for the battle against systemic corruption both in Bra- zil and elsewhere. This essay provides a comprehen- sive account of Lava Jato and its significance for Bra- zil going forward. It is important to note from the beginning that Lava sÉrgio fernando moro is Jato is not a single criminal case but several, in which a Federal Judge of the Thirteenth federal prosecutors have decided to pursue separate Federal Criminal Court of Curi- charges against many defendants. -
BTI 2020 Country Report Peru
BTI 2020 Country Report Peru This report is part of the Bertelsmann Stiftung’s Transformation Index (BTI) 2020. It covers the period from February 1, 2017 to January 31, 2019. The BTI assesses the transformation toward democracy and a market economy as well as the quality of governance in 137 countries. More on the BTI at https://www.bti-project.org. Please cite as follows: Bertelsmann Stiftung, BTI 2020 Country Report — Peru. Gütersloh: Bertelsmann Stiftung, 2020. This work is licensed under a Creative Commons Attribution 4.0 International License. Contact Bertelsmann Stiftung Carl-Bertelsmann-Strasse 256 33111 Gütersloh Germany Sabine Donner Phone +49 5241 81 81501 [email protected] Hauke Hartmann Phone +49 5241 81 81389 [email protected] Robert Schwarz Phone +49 5241 81 81402 [email protected] Sabine Steinkamp Phone +49 5241 81 81507 [email protected] BTI 2020 | Peru 3 Key Indicators Population M 32.0 HDI 0.759 GDP p.c., PPP $ 14393 Pop. growth1 % p.a. 1.7 HDI rank of 189 82 Gini Index 43.3 Life expectancy years 76.3 UN Education Index 0.692 Poverty3 % 9.8 Urban population % 77.9 Gender inequality2 0.381 Aid per capita $ -0.2 Sources (as of December 2019): The World Bank, World Development Indicators 2019 | UNDP, Human Development Report 2019. Footnotes: (1) Average annual growth rate. (2) Gender Inequality Index (GII). (3) Percentage of population living on less than $3.20 a day at 2011 international prices. Executive Summary In the 2016 to 2018 period, the political changes that have taken place in Peru have been as numerous as they have been substantial. -
Peruvian Impeachment and Unrest: Situation Report Peru Lima
Peruvian Impeachment and Unrest: Situation Report 11/17/2020 Presidential tumult likely to impede COVID response Peru On 9 Nov, a politically expedient vote to impeach Martin Vizcarra, the country’s most Past 60 Days popular politician, led to protests exacerbated by COVID-19; restive protests are very likely to continue. After acting president Manuel Merino resiGned on 15 Nov in response to protests, centrist Francisco SaGasti was promoted to president on 17 Nov. Demonstrations are almost certain to continue, especially in the Lima metropolitan area and larGer cities such as Arequipa and Trujillo, where conFrontations with the security Forces remain probable. Any perceived police repression is expected to increase the intensity oF protests and number oF protesters. As the pandemic surGes on, leadership turnover at the highest level can be expected to remain an obstacle For any sort oF cohesive COVID-19 response plan in a country where Government proGrams may be necessary in order to stave ofF participation in the country’s massive inFormal economy. Hyperion Analytics: Over the past 60 days, Hyperion has shown a marked downward trend in Pulse stability For Peru, with health and crime as primary drivers oF instability. The Pulse stability ratinG has dropped since the start oF the protest movement on 9 Nov, From a hiGh point oF 55 on 6 Nov to a low oF 38 by 13 Nov, a total drop oF 17 points in seven days. Over the past seven days, Lima unrest and crime have been the primary drivers oF instability – Hyperion has taGGed 167 Past 60 Days unrest events durinG this timeFrame, 100 oF which were in Lima, accountinG For nearly 75% of total unrest events in the past 60 days. -
Explaining the Turmoil of the Peruvian Democracy
> Corruption, Congress and COVID: Explaining the turmoil of the Peruvian democracy Hippolyte Cailleteau Master en science politique, spécialisation Relations internationales Sciences Po Décembre 2020 Shifting back to democracy in 2000, the Peruvian political success amazed many observers. Free and fair elections took place regularly, with political alternation. The country's Growth National Income tripled over 15 years, between 2000 and 2015. Overall, the country triumphantly managed to go through the first fifteen years of the 21st century and appeared to have made its way towards a durable and liberal transition. The November 2020’s events depict a diametrically opposed situation; the Andean nation has known no less that three presidents in the span of a week. In the month of December 2020, the situation has become increasingly tenser, with massive demonstrations taking place in Lima, overtly opposing Congress-led destitution of President Martin Vizcarra. Journalists even labelled it "the worst crisis the South American nation has faced since the downfall of authoritarian President Alberto Fujimori", as two young adults died of police assault while demonstrating. How can a country which has been praised for its transition get to this point? Enduring corruption at the helm of the State Accusations of corruption are hardly a new phenomenon in Peru. All of the 21st century-elected presidents were either put on trial or even convicted of these charges. Three of them are currently still entangled in the corruption scandal involving the Brazilian Odebrecht construction company. This is what eventually led President Pedro Pablo Kuczynski (PPK) to resign, in order to avoid a shameful impeachment trial, and leave the way to his vice president. -
What's Next for Business in Peru?
ARTICLE Giant Pencils and Straw Hats: What’s Next for Business in Peru? Following a razor-thin voting margin, the Peruvian population elected schoolteacher and left-wing candidate, Pedro Castillo, to the presidency. Castillo’s election has brought uncertainty to businesses in Peru due to a palpable fear of radical leftist reforms that would threaten Peru’s image as a nation welcoming of foreign investment. However, those concerns may be premature and overblown. We believe that Castillo is likely to step back from necessary legislative support to achieve meaningful changes implementing the sort of radical change promised during to the Peruvian economy will be a difficult task for a new, the run-up to the election. Promises made during campaigns inexperienced president with a very limited mandate and an are frequently disregarded when governing, and we believe obstructive Congress. a pragmatism is likely to prevail. Castillo has limited Castillo’s election looks more like Humala in 2011 (or Lula maneuvering room and will focus his attention on fixing in 2002) than Chávez in 1998, with the new Peruvian the obvious divide within the country and regenerating president likely to maintain a market friendly economy the heavily COVID-19 hit economy. Even if he is pressured coupled with an increased focus on programs to attempt to to implement anti-market reforms – possibly as a result of address social inequality. pressure from stalwarts in his party Peru Libre – gathering the GiaNT PENcilS AND StraW HatS: What’S NeXT FOR BUSINESS IN PerU? FTI -
Handling Systemic Corruption in Brazil
BRAZIL INSTITUTE A Conversation with Judge Sérgio Fernando Moro Handling Systemic Corruption in Brazil THE WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS, established by Congress in 1968 and headquartered in Washington, D.C., is a liv- ing national memorial to President Wilson. The Center’s mission is to commem- orate the ideals and concerns of Woodrow Wilson by providing a link between the worlds of ideas and policy, while fostering research, study, discussion, and collaboration among a broad spectrum of individuals concerned with policy and scholarship in national and international affairs. Supported by public and private funds, the Center is a nonpartisan institution engaged in the study of national and world affairs. It establishes and maintains a neutral forum for free, open, and informed dialogue. Conclusions or opinions expressed in Center publica- tions and programs are those of the authors and speakers and do not necessarily reflect the views of the Center staff, fellows, trustees, advisory groups, or any individuals or organizations that provide financial support to the Center. Jane Harman, Director, President and CEO BOARD OF TRUSTEES Thomas R. Nides, Chairman Public members: James H. Billington, Librarian of Congress; John F. Kerry, Secretary, U.S. Department of State; G. Wayne Clough, Secretary, Smithsonian Institution; Arne Duncan, Secretary, U.S. Department of Education; David Ferriero, Archivist of the United States; Fred P. Hochberg, Chairman and President, Export-Import Bank; Carole Watson, Acting Chairman, National Endowment for the Humanities; Kathleen Sebelius, Secretary, U.S. Department of Health and Human Services Private Citizen Members: Timothy Broas, John T. Casteen III, Charles Cobb, Jr., Thelma Duggin, Carlos M. -
Brazil's Clean Company Act: How U.S., U.K., and Global Models May Influence Enforcement
Brazil’s Clean Company Act: How U.S., U.K., and Global Models May Influence Enforcement July 14, 2014 1) Introduction Brazil’s new anti-bribery law (Law no. 12.846/2013), often referred to as the “Clean Company Act,” officially took effect on January 29, 2014. This article compares key elements of the Clean Company Act with the U.S. Foreign Corrupt Practices Act (“FCPA”) and the U.K. Bribery Act 2010 (“Bribery Act”) and considers the outlook for enforcement of the bribery offenses in the new law in the context of U.S., U.K., and global trends. In particular, the article highlights the following themes: • The impact of extraterritorial jurisdiction on anti-corruption enforcement; • The various matter resolution tools available to authorities in enforcing the Clean Company Act, as compared to options available to U.S. and U.K. authorities; • The likely influence of U.S., U.K., and global anti-bribery trends on the Brazilian approach to enforcement under the new law. Multinational companies accustomed to the demands of the anti-corruption enforcement regimes of the U.S., the U.K., and relevant international bodies (e.g., the World Bank) will not be surprised by the scope and reach of the Clean Company Act. Nevertheless, they should be attuned to its unique features when appropriately tailoring their anti-corruption compliance programs. Indeed, representatives of relevant Brazilian enforcement agencies have publicly pronounced that enforcement of the new law will be a top priority for the Brazilian government. 2) Overview of the Clean Company Act A. Subjected Entities The Clean Company Act applies to: a) Business organizations in Brazil (whether incorporated or not); b) Any Brazilian foundations or associations; and c) Foreign companies with any presence in Brazil (even if temporary). -
Brazil's Clean Company
August 2013 JONES DAY COMMENTARY In collaboration with Mattos Muriel Kestener Advogados Brazil’s Clean Company law: new risks for Companies Doing Business in Brazil In early July, as millions of Brazilians flooded the in bribery of Brazilian and foreign public officials. The streets to protest against government corruption and ability of Brazilian prosecutors to target companies waste, Brazil took the final steps to enact a landmark under the Law may mean heightened exposure under anticorruption law. On August 1, Brazilian President existing law for officers, directors, and employees Dilma Rousseff signed Law No. 12.846, also known of those companies. The Law also provides for an as the Clean Company Law (the “Law”), which estab - enforcement regime that promises to be expensive lishes a corporate anticorruption regime that shares for companies that might become its targets. characteristics with the U.S. Foreign Corrupt Prac - tices Act (“FCPA”) and the U.K. Bribery Act. The Law The adoption of the Law caps a three-year process imposes strict civil and administrative liability on Bra- that mostly predates the recent public outcry against zilian companies for domestic and foreign bribery. corruption. Its longer aim was to improve Brazil’s International companies with a presence in Brazil are compliance with the OECD Convention on Com - also covered if they engage in bribery within Brazil. bating Bribery of Foreign Public Officials, to which Brazil (although not an OECD member) is a signa - The Law will go into effect on January 29, 2014, 180 tory. Approval of the Law was widely regarded as an days from the date of its publication in Brazil’s Offi - important move to align Brazil with other nations with cial Gazette, and will have important and immediate corporate anticorruption laws on their books, and it implications for companies that operate in Brazil.