Foreword By Former President]immy Carter

ore than 20 years have passed since I created the Foreign Corrupt Practices Act. This law, which M remains in effect, holds U.S. businesses to a high standard of honesty, making it illegal for corpora­ tions and individuals to bribe foreign officials and stiffly penalizing violators. In recent years, other countries have turned their attention to this issue, and the Organisation fo r Economic Co-operation and Development and the Organization of American States both have signed international conventions against bribery. Amid a growing international consensus that corruption inhibits development and undercuts public confidence in democratic institutions, it seemed natural for The Carter Center to host a meeting called the Transparency for G rowth conference, in which hemispheric leaders could examine the corruption problem and potential remedies. Through plenary sessions and small, closed-door working groups, many anti-corruption experts, policy professionals, civil society leaders, funders, journalists, and representatives from international financial institutions joined with the Council of Presidents and Prime Ministers of the Americas, a Can er Center­ based group of 32 current and former heads of government from this hemisphere. We again coordinated our conference with "CNN's World Report," sharing our message worldwide via the media network. This report summarizes the participants' discussions and conclusions, along with information about the Latin American and Caribbean Program's continued efforts to enhance transparency in Costa Rica, Ecuador, and Jamaica.

The evidence indicates that all countries have some form of corruption. It is also a two-way street, making it an international as well as national responsibility. In poor countries especially, bribery and kick­ backs inhibit development by discouraging investment and exacerbating inequality in access to goods and services. But as the conference emphas ized, practical strategies- which show early indications of success - can reduce corruption. The international community stands ready to help citizens and leaders who want to deepen the rule of law and consolidate democratic governance.

2 Transparency in the Americas Table of Contents

Foreword by Former President Jimmy Carter ...... 2 Why Transparency is Essential: A Conference Introduction by Dr. Jennifer McCoy, LACP Director...... 5 The Carter Center's Transparency Project by Dr. Shelley McConnell, LACP Associate Director...... 9 Opening Remarks Summary ...... 12 Plenary Sessions Summary ...... 14 Plenary 1 : Corruption Causes, Consequences ...... 16 Plenary 2: Transparency Strategies ...... 17 Rapporteur's Reports on the Working Groups A: The Political-Business Nexus ...... 19 B: Implementing International Accords ...... 20 C: Civil Society and Access to Information ...... 21 D: The Role of the Media ...... 23 Final Statement from the Council of Presidents and Prime Ministers of the Americas ...... 25 About The Carter Center ...... 28 About the Latin American and Caribbean Program ...... 29 Agenda of the Transparency for Growth Conference ...... 30 Conference Participants ...... 31

The Carter Center gratefully acknowledges the sponsorship We would like to thank our conference contributors: of The Coca-Cola Company, whose generous support The Coca-Cola Company enabled us to convene the Transparency for Growth confer­ Delta Air Lines ence and allows us to continue our work on hemispheric lnvesco relations in the Americas. King & Spalding, LLP McCormick Tribune Foundation United Parcel Service

We also want to recognize our in-kind supporters: BelLSouth Chick-fil-A

The Carter Center • Latin American & Caribbean Program J

Why Transparency Is Essential: A Conference Introduction By Dr. Jennifer McCoy, LACP Director

he Carter Center's Latin American and Carib· ception Index ugge tS that top business people view bean Program (LACP) initiated a multiyear Latin American nations ru, among the most corrupt an T project in September 1998 to build partner­ the world. Catazens an thi hema phere, however, are haps aimed at making the Western Hemisphere a begannang to demand that governments take action, model regaon for combaung corruption. and are organmng themselve to promote change. The project stems from the Agenda for the Amen· cas for the 21st Century consultation, held at The How anti~corruption measures have fared Carter Center in Apnl 1997. At that meeting, 17 Openang up economae and estabh hang democratic former and current presidents and prime ministen. from governments provade a trong bulwark against corrup· the Americas JOined the president of the Inter-Ameri­ tion in two way . It reduces dtscreuonary mtervention can Development Bank (lOB), the secrerane -general an the economy and provade anstltutaonal check· on

of the Organization of American States (OAS) and the abuse of authority ami public accountability via elec­ Opening up United Nations, and other leaders in identifying cor­ tions. Ironically, however, the twin economic and po­ economies ruption as a threat ro democracy and economic devel­ litical transitions that hold such promise for future and establish~ opment. This undertaking reflects an emerging regional transparency tend, in the short run, to expo e fragile ingdemo- consensus that more than rhetoric must fight corrup· democracae to corruptaon on an expanded c;cale an new cratic govern~ tion if Latin America and the Caribbean are to enJOY form and at new levels of governance. the rule of law and attract the magnitude of investment Newly democratic governments have not been able ments provide necessary for more equitable development. to establish effective anti-corruption measures because a stTong bu.l- Corruption is a global problem, confronting all ~­ they do not know how, do not have the re~urce , or wark against cieties in some way. In Latin America and the Carib­ are captive to the intere:.ts of entrenched ehte . Aero corruption. bean, there ts abundant evadence of corruption at many the hemasphere, judacianes are weak, malitanes clang w levels. Public figures leave office with more asset:. than their autonomy and rest t pubhc oversight, pol ace forces government salaries could amass. Postal clerks and po· are tll-paad and all-adapted to a community polacang !icemen take bribes to supplement meager incomes. mission, and the rules for campaign finance and budget The Transparency International (TI) Corruption Per~ tracking are underJevelopeJ and unenforced.

The Carter Center • Latin American & Caribbean Program 5 Corruption's impact on people, economy The World Bank has conducted extensive corru • Where corruption is rampant, citizens are apt to lose tion research and establi hed a survey to identify ineffi­ faith in democracy. In a December 1997 survey of ciencies in the delivery of public services to help map 17,800 respondents funded by IDB and the European corruption. The International Monetary Fund and lOB Union, 65 percent of Latin Americans reported they have begun ro enforce accountability from loan recipi· were dissatisfied with their country's democracies.• ents and make good governance the criterion for their Distressingly, a poll sponsored by The Wall Street support. The U.S. and some European governments journal and 16 newspapers in Latin America found that help fund measures ro increase transparency, and Vice just before the April 1998 Santiago Summit, nearly President AI Gore has made transparency a top priority, one-quarter of Latin Americans thought more authori· hosting a global summit in February 1999 to fight tarianism would be better for their country.2 corruption.

With a The 1997 World Bank Development Repon noted This new consensus against corruption has formed freer press, that corruption violates the public trust and corrodes just in time. With a freer press, awareness of corruption social capital and political legitimacy "where even has mushroomed in recent decades. Corruption is awareness of noncorrupt officials and members of the public sec little hurting those who can least afford it. In response, poli­ carruption has point in playing by the rules."1 Corruption scandals ticians are transforming the issue into campaign plat· mushroomed have rocked Mexico and Argentina, and precipitated forms, pledging ro clean up government, sometimes by in recent presidential ousters in Brazil and Ecuador. rejecting established parties and constitutions. The decades. The economic damage that corruption causes in stability of the region's economies and democracies will the public and private spheres is difficult ro accurately rely partly on our success in deepening the rule of law quantify, but is considered large and detrimental to fi­ and strengthening accountability. nancial planning. Corruption creates a hidden tax on business, averaging between 10 percent and 15 percent High,level transparency support of a contract's value, and has cost U.S. firms at least Three members of The Carter Center's Council of $1 1 billion in contracts since mid-1994. World Bank Presidents and Prime Ministers pledged to lead their President James Wolfensohn called corruption the countries roward transparency. Shortly after his elec­ single-largest deterrent ro private inve tment in devel· tion, President Miguel Angel Rodriguez invited The oping countries.4 Carter Center to parrner him in maintaining Costa Rica's strong reputation for honesty. Prime Minister P.J. Carruption remedies available Patterson, now in his third term, seeks to make Jamaica Discouraging as these reports are, The Carter Center's a model of transparency in the Caribbean. President Transparency for Growth conference emphasized that Jamil Mahuad Witt announced at his inauguration that practical strategies for fighting corruption already exist, he would take swift steps to stem the tide of corruption and the international community cohesively supports in Ecuador and requested The Carter Center's help in such efforts. honoring that pledge.

6 Transparency in the Americas Conference's focus 1. Political-business nexus, highlighting the interde­ This report focuses on the internation::.l Transparency pendence of the public sector with the private secror. Discussions for Growth conference held May 3-5, 1999, at The From politicians dependent on private contributions to focused on Carter Center in Atlanta, Ga. The conference drew finance parry activities and campaigns, to businessmen initiatives that upon what we learned in the first eight months of work dependent on government contracts for their liveli­ the executive toward transparency in Ecuador, Costa Rica, and Ja­ hood, this nexus can appear as an opaque tangle of branch or civil maica, and offered civic and political leaders from those promises and ties impossible to unravel. Opening up countries and others an opportunity to share their those transactions through specific disclosure mecha­ society can progress. nisms, however, will level the playing field, while pro­ lead to In our own efforts we have learned from and col­ tecting all the actors from unfounded accusations of improve laborated with the World Bank Institute and Transpar- conflicts of interest or unethical, even illegal, behavior. transparency.

ency International, as well as the many individuals and Three initiatives can improve transparency: organizations fighting corruption in each country. 0 Parry and campaign finances regulation and disclo­ Cable News Network (CNN) worked with us to assure sure. these ideas reached a broad audience, hosting our par­ 0 Financial disclosure requirements (a declaration of ticipants at an opening reception and dinner for report­ assets and business relationships) from elected and ers from its World Report conference. The network also appointed officials to avoid conflicts of interest asked CNN en Espafiol anchor Jorge Gestoso to moder­ when they must make decisions that could affect ate our final press conference. their private interests. Our discussions focused on initiatives that the ex­ 0 Corporate codes of conduct, compliance programs, ecutive branch or civil society can lead to improve and financial disclosure to deter bribery or undue transparency of government transactions. This was not influence in corporate transactions with the public to deny the importance of such areas as judicial, cus­ sector, particularly through public contracting. toms, police, and security reforms. By capitalizing on 2. International accords implementation. Six coun­ the participating Council members, however, we em­ tries in the hemisphere have signed the 1997 O rganisa­ phasized how to achieve and exercise the political will tion for Economic Co-operation and Development to overcome structural and political obstacles to fight (OECO) Convention on Combating Bribery of Foreign corruption. We also evaluated civi l society's role in this Public Officials. Twenty-five countries have signed the effort, from generating the hope that something can be 1996 Inter-American Convention Against Corruption, done, to demanding accountability of government offi­ but only 14 have ratified. cials, to organizing constructive initiatives to improve These treaties are important steps in bringing a transparency. common approach to solving botl1 the demand and sup­ ply side of bribery. However, they will only be effective Working groups' emphasis when signatory countries fully implement them. We The working groups centered on three themes: discussed how to encourage ratification in additional

The Carter Center • Latin American & Caribbean Program 7 countries, and what kind of support programs and Service, both Atlanta-based firms with strong connec­ monitoring efforts might help to ensure consistent tions to Latin America and the Caribbean, and addi­ implementation. tional support from lnvesco. Chick-fil -A and BeiiSouth 3. Civil society and access to information. Access to made in-kind contributions, and King & Spalding information or freedom of information laws can provide hosted our opening dinner. The McCormick Tribune crucial transparency by allowing journalists and citizens Foundation also made a substantial conference grant. the opportunity to evaluate what their governments are The conference would not have been possible doing. without the tremendous organizational skills of Becky

We hope the Such transparency is particularly important in two Castle, Tanya Mujica, and their student interns and volunteers. Robert Pastor, Nancy Boswell, Luis Moreno conference areas of potentially high corruption: public contracting (government procurement) and privatization. We dis­ Ocampo, Henry Carey, Nobina Robinson, and Jan and this cussed different strategies to improve transparency by Barton graciously volunteered as discussion leaders and report wiU giving citizens additional mechanisms to follow govern­ rapporteurs and wrote summaries of the working group galvanize ment activities in these areas, including publicizing sessions. Council members Osvaldo Hurtado, Gonzalo public contract award information through Internet databases, S~nchez de Lozada, and Rodrigo Carazo chai red the support for holding public hearings to help prioritize and monitor working groups. Pedro Pablo Dfaz and Bob Pastor also public works projects, municipal-level social auditing of encouraged and inspired us to begin this project. transparency. public works, and independent monitors of privatiza­ We hope the conference and this report will galva­ tion processes. All of these mechanisms can help build nize public support for transparency, inform and encour­ crucial confidence in these transactions among both age citizens across the hemisphere who devote their investors and citizens. energy to building a corruption-free future, and assure Along with the working groups, a roundtable for leaders that their commitments to honest practices will media participants discussed the media's role - from be recognized and rewarded at home and abroad. credible investigative reporting to gaining access to in­ 1 formation and using it appropriately. The roundtable Andres Oppenheimer, "Democracy Under Pressure in Latin Re­ gion," Miami Herald 12 Apr. 1998. also proposed future initiatives for conference partici­ 2 Edward Schumacher, "A Meeting of Minds, From Peoria w pants and made final statement recommendations. Patagonia," The Wall S~reet}oumal1 6 Apr. 1998: International Sec­ tion.

Conference sponsors, supporters l The World Bank, "The State in a Changing World," 1997 World Bank Det~elopment Report, spec. issue of Accountability/Anti-corruption, Our Transparency for Growth conference, funded by 3 (September 1997): "Restraining Arbitrary State Action and Cor­ The Coca-Cola Company, was the first of three events ruption," C hapter 6. to be held over a five-year period, designed to ~ Jack Nelson, "29 Countries Commit to Pact Against Bribery," The Los Angeles Times 21 Nov. 1997: AI strengthen the growing partnership between the United States and Latin America. We also received generous contributions from Delta Air Lines and United Parcel

8 Transparency in the Americas The Carter Center's Transparency Project By Dr. Shelley McConnell, LACP Associate Direcwr

Then,u.s. he Carter Center embarked upon a new pro­ tailored anti-corruption initiatives designed in consul­ Treasury gram in 1998 to reduce corruption in the tation with each government and civil society. The Cen­ Secretary T Americas. We partnered three countries­ ter requested that the leaders from each partner country Robert Costa Rica, Ecuador, and Jamaica- whose leaders re­ name a liaison who could work with the Latin Ameri­ Rubin quested we help them develop and assess specific anti­ can and Caribbean Program (LACP) staff to assure sus­ (center) corruption tools. tained, high-level attention to fostering transparency. answers questions Costa Rica provided an opportunity to work in a from the Central American country where democracy was deeply toward reform Costa Rica's journey press. Rubin established, indices suggested there was comparatively After meeting with Costa Rica President Miguel Angel called for little corruption, and opinion polls showed citizens Rodrfguez in June 1998 at The Carter Center, President international thought their country should bolster transparency to Carter and former Ecuador President Osvaldo Hurtado lending help preserve the rule of law. visited Costa Rica to learn more about its national con­ institutions to toughen As a South American country where corruption sultation, through which the government sought toes­ the fight had helped cause the fall of a government, Ecuador tablish a broadly supported agenda of reform. against posed a more serious challenge. The potential for mean­ This concerraci6n process targeted corruption as a corruption ingful progress was evident in President Mahuad's key policy reform area, developing a series of suggested among strong commitment to transparency, and by the variety reforms to promote transparency and bring Costa Rica emerging of civil society organizations dedicated to fighting cor­ into full compliance with the Inter-American Conven­ market ruption, including a national anti-corruption commis­ tion Against Corruption. President Rodrfguez spoke countries. sion based in the 1998 constitution. about those reforms at our May conference (see the sum­ In Jamaica, we worked to support legal initiatives mary of his remarks in this report), and we published his that the parliament had undertaken to strengthen dec­ comments on the Web. We also commissioned a study laration of assets and freedom of information. In the of the concerraci6n process, the suggested reforms, and process, we drew insights into a second legal-political the degree of their implementation, to better under­ tradition in the hemisphere. stand how to support such national processes. Corruption's varied levels and forms in these coun­ We accompanied President Rodrfguez's transpar­ tries reflected the problem's complexity and demanded ency advisor on visits to Ecuador, where he met key

The Carter Center • Latin American & Caribbean Program 9 government and civil society officials to discuss the two database and promote competitive bidding. countries. We currently are working with Costa Rican 0 Development of a civil society commission to nongovernmental organizations (NGOs) to hold a monitor the privatization of electricity, acting as a workshop on how civil society can monitor privatiza­ "friend of the process." As a result, we will meet tion and public contracting, a project funded in part by periodically with the commissioners to learn about the Tinker Foundation. and promote their progress, and mediate any diffi­ culties. Ecuador's initial plans take hold To accomplish these tasks, our staff visited Ecuador We are work~ In Ecuador, President Mahuad pledged to President six times during nine weeks, and President and Mrs. ingwith Carter that he would develop a national anti-corrup­ Carter visited Quito, Ecuador's capital, with Council Costa Rican tion plan. We consulted with the Mahuad government member and former Bolivia President Gonzalo Sanchez accordingly. The plan debuted in Atlanta on May 4, de Lozada. We also placed a field representative in nongovem~ 1999, at the Transparency for Growth conference. Our Ecuador during three key months to maintain a strong mental next task is to help Ecuador implement it. network and bring these projects to fruition. organizations In addition, we helped build the capacity of gov­ to hold a work~ ernment agencies and civil society organizations fight­ Jamaica's charted course shop on how ing corruption. We worked with Ecuador's: Our engagement in Jamaica differs, centering on im­ 0 Commission for Civic Control of Corruption to proving that country's legislative efforts by: civil society win a grant to bring current and former anti-cor­ 0 Commissioning a well-known barrister and democ­ can monitor ruption commissioners from Hong Kong and else­ racy expert to write an annotated guide of Jamaica's privatization where to discuss a strategic development plan for existing legislation against corruption. and pubLic that new, constitutionally based body. 0 Asking the former chair of the University of the contracting. National plan coordinator to locate a consultant to We t Indies Department of Government, who also help devise an lnternet-accessed public contracts is a current independent senator, to evaluate the

1Q Transparency in the Americas declaration of assets law before Parliament, compare First year's outcome Jamaica's anti-corruption commission with others The Center's initial year of work on transparency worldwide, and conduct a comparative study on helped raise awareness about the corruption problem access to information legislation pending in Ja­ and potential solutions, and the LACP will maintain maica. this effort. In addition, we will seek to wed our under­ 0 Uniting Jamaican anti-corruption specialists with standing of transparency to our election monitoring. experts on these issues at Harvard, co-sponsoring a This objective will help us to develop new tools for as- conference on practical strategies for fighting cor­ suring electoral transparency during election campaigns In Ecuador, ruption in Latin America. and resolving disputes fo llowing an election. we helped 0 Bringing civic leaders from Jamaica to Atlanta for These concrete beginnings convey that countries build the the transparency conference. Since then, these ex­ can eventually win the battle against corruption with capacity of perts and leading citizens have worked together in international support and local commitment. There is Jamaica, discussing ideas from these conferences more to do, but a host of multilateral organizations, government with Prime Minister P.J. Patterson. They also have governments, NGOs, and policy analysts are working agencies and organized to publish the studies that The Carter together in new networks to reduce corruption and civil society Center commissioned. Oliver Clarke, publisher of a build transparency. Using its convening capacity, The organizations tO Carter Center gathered these specialists at the Trans­ leading Jamaican daily newspaper, decided in­ fighting clude transparency on the agenda of his annual parency for Growth conference, fostering an exchange Think Tank seminar and invite another conference of ideas that may have far-reaching effects. corruption. participant, the former commissioner of Hong Kong's Independent Commission Against Corrup­ tion, to participate.

The Carter Center • Latin American & Caribbean Program 11 elow are speech highlights from then-U.S. Secre­ reduce citizens' willingness to pay taxes. This deprives tary of the Treasury Robert Rubin and Costa Rica governments of needed resources for public investment BPresident Miguel Angel Rodriguez, keynote speak­ and undermines fiscal stability. ers at the conference. Atlanta law firm King & Spalding Rubin highlighted five critical elements for effec­ hosted the event. tively combating corruption: 0 Sensible, clear laws and regulations with a robust International Rubin's ke y messages court system independent of political pressure. organizations Rubin explored corruption as a critical economic and 0 Elimination of all nonessential licensing, regulatory financial issue, citing that Latin America accounts for approvals, and other discretionary controls to re­ have strong nearly 50 percent of the total U.S. export growth, and duce the administrative discretion that creates op­ to roles play U.S. trade with Latin America almost equals our portunities for corruption. in combating country's trade with Europe. 0 A well-supervised, soundly regulated, and competi­ corruption. Latin America's economic health is important to tive financial system that operates commercially.

the United States, continued Rubin, but corruption is a 0 Increased transparency and accountability of prime impediment to economic growth, inhibiting in­ government operations and decision making, vestment, discouraging small business, and leading to supported by a free and active press. inefficient resource allocation. Corruption rendered 0 A sound civil service system with strict rules pre­ countries more vulnerable to the global financial crisis venting conflicts of interest, adequate compensa­ for the last two years and hindered the necessary re­ tion to reduce temptation to accept bribes, and sponse to that crisis. proper sanctions for malfeasance. He added that corruption is especially pernicious in Rubin emphasized that the International Monetary developing countries because it benefits the few, divert­ Fund (lMF), World Bank, Inter-American Develop­ ing scarce resources that are needed for health, educa­ ment Bank (lDB), and Regional Development Banks tion, and housing. By undermining the rule of law and have strong roles to play in combating corruption. He confidence in public institutions, corruption also can praised the IMF for developing a code of fiscal transpar

12 Transparency in the Americas ency and the World Bank's new methodologies for ana­ than a year after the accord was signed in Caracas, Yen· lyzing corruption. ezuela. Through the Concerraci6n Nacional, a national He also noted that corruption is a two-way street, con. ensus-building forum, Costa Rica analyzed a list of and Organisation for Econom1c Co-operation and i ues and developed pohcy recommendations. The. e Development (OECD} member countries should mcluded: discourage bnbes more and Immediately end bnbes' tax 0 A reformed penal code. deductibility. Additionally, Rubin acknowledged The 0 A code of conduct for public servants. Carter Center's contribution of the conference. lie 0 A financial administration and public budget law. hoped the conference would raise public awareness, 0 Constitutional reforms to eliminate the executive help make corruption socially unacceptable, and pardon and limit public officials' immunity from identify and promulgate best practices for building prosecution. transparency. He noted that his government and the Comptrol· ler General's Office were reviewing their mechamsms President Rodriguez's highlights for control, and he will recommend creating a special­ President Rodrfguez pre ented an intellectual hi tory of ized prosecutor's office and jurisdiction withm the JUdi· corruption, examining the relationship between politics cia! power to resolve ethics cases. and morals through the writing of Machiavelli, Weber, In addition to his public pledge to work toward Constant, Hume, Madison, and others. Yet he cau· th~ e future reforms, President Rodriguez already has tioned that corruption was not merely a problem of adopted a decision establi hing norms of public ethics individual immorality. for political appointees. Furthermore, the government He applauded Dr. Robert Klitgaard's analysis that has engaged in deregulation to cut the red tape that government i composed of an information ystem, fuels discretionary decisions and invites corruption. President Rodriguez already has adopted a deci~ sian establish~ ingnorms of public ethics for political appointees.

rules, and mcentives with a synergistic quality that ex­ To curb cults of personality that may arise around ceeds the urn of the ind1viduals who comprise it. Con­ the presidency, Pre idem Rodriguez has i ued a decree sequently, Pres1dent Rodrfguez cautioned aga1nst the abolishing the di play of the president's portrait m pub· temptation of a new form of McCarthyism. Rather, he lie offices and the use of quasi-aristocratic forms of ad· stressed the need for rule codification and preventative dress on his behalf. The decree also prohibits the use or policies to reduce discretionary power, coupled with the display of public officials' names in public works built maximum penal correcuon for offenders and educa· with public funds. He also has proposed legal reforms to tiona! poltc1e to mculcate values that do not tolerate help the media expose corruption, similar to American corruption. jurisprudence derived from The New York Times vs. President Rodrfguez also focused on Costa Rica's Sullivan case. achievements ince ratifying the Inter-American Con­ vention Against Corruption on Aprill7, 1997, le

The Carter Center • LAtin American & Caribbean Program 13 ~----- Plenary~essio Summary

No country he first full day of meetings began with two ple­ is exempt nary sessions open to a broad audience, and a from corrup, T presentation by President]amil Mahuad of Ecua­ tion. Fortu, dor concerning his government's transparency work. nately, policy President Carter introduced the plenary sessions, asserting that no country is exempt from corruption. Cor­ remedies exist. ruption is a major problem in Nigeria, where it has helped to reduce per capita incomes from about $800 to $300 in recent years, but it affects developed democracies as weU . Several European countries have not only legalized bribes co foreign officials , but aLso made them taX deductible. And the United States needs substantial campaign finance reform. Fortunately, policy remedies exist. The U.S. Foreign Corrupt Practices Act has proven effective, and countries such as Hong Kong and Costa Rica are sharing their successes in combating corruption. The World Bank, Inter-American Development Bank (I DB) and Transparency International (TI) have developed new cooLs for measuring and stopping corruption , and can lend their support, President Career said. IDB President Enrique Iglesias, T I Latin America President Luis Moreno Ocampo, and Dr. Robert Klitgaard, dean of the RAND Graduate School in Santa Monica , Calif., composed the first plenary panel, focusing their re­ marks on the causes and consequences of corruption. The second plenary panelists - World Bank representative Dr. DanieL Kaufmann, T l President Peter Eigen, and OECD's

14 Transparency in the Americas The Carter Center • Larin American & Caribbean Program 15 A vital issue Dr. Mark Pieth- imparted strategies for improving trans­ such as ratification of the Organization of American for fighting parency. President Mahuad followed to present Ecuador as States (OAS) Convention, a workshop on money laun· dering prosecution, and a regional meeting of procure­ a case example of how to combat corruption. corruption in ment officials. Latin Dr. Moreno Ocampo's perspective America is Plenary...... 1 Dr. Moreno Ocampo underscored the following positive milemarkers that have occurred since the United how to build Corruption Causes, Nations' failure to pass an international agreement on coalitions illicit payments in the 1970 : among the Consequences 0 The United States passed the Foreign Corrupt Practices Act in 1977. private sec, 0 TI was founded in 1993. Dr. Iglesias' view tor, govern, 0 The Inter-American Convention Against Corrup­ Corruption is "one of the most important issues of mod­ tion was approved in 1996. ment, civil em times that imposes tremendous costs" by misallo­ 0 The OECD convention entered into force in 1999. cating resources needed for growth and preserving pa· society, and Although corruption is a global problem, Tl's temalistic states with corrupt administrations, said Corruption Perception Index indicates that Latin multilateral Iglesias. Narco-trafficking also is greatest in societies America is the second-most corrupt region, after the whose leaders receive bribes from illegal, drug-related organizations. former Soviet republics. Latin America's bureaucracies enterprises. also are among the worst and are not improving. Liberalization of the press has produced more And the region's high unemployment, 35 percent reporting of corrupt practices that previously were poverty rate, and growing crime correlate with high secret under authoritarianism. Under rule of law, people corruption levels. no longer view corrupt practices as inevitable, though Dr. Moreno Ocampo proposed this antidote to cor­ they see a need for better public institutions and civil ruption: Information + Leadership + Collective Action. A servants. vital issue for fighting corruption in Latin America is Meanwhile, economic Liberalization has increased how to build coalitions between the private sector, gov­ competition and eliminated monopoly pricing and ernment, civil society, and multilateral organizations. rents, as well as reduced state intervention that created Informed leaders can stimulate collective action against opportunities for government officials to demand corruption through integrity agreements among a gov­ bribes. Banking, taxation, and procurement reforms ernment, the business community, and civil society. have cut excessive regulations, and the U.S. Agency for International Development (USAID) and others have Dr. Klitgaard's corruption analysis worked to reform and strengthen weak judiciaries. Dr. Klitgaard investigated how corruption affects sys­ Corruption also results from societal excesses like tems, drawing a parallel to the AIDS crisis. He sug­ individualism and materialism. Research on the rela­ gested public mentality must change to combat both tionship between ethics and individualism would be problems, but cultural change comes slowly, and politi· helpful, iglesias added. cal progress must occur in the interim. As with AIDS, The IDB also has undertaken a "revolutionary" the best strategy to combat it is to raise awareness about new corruption policy. The bank now requires that all the problem, focus on prevention, and find a cure. commissions paid on its projects be declared and its of­ His formula of Corruption = Monopoly + Discretion ficials have access to documents for inspection. The -Accountability means corruption relies on incentive bank also supports activities against corruption in par­ structures that motivate corrupt behavior. Civil service ticular countries and supports dialogues on corruption, reforms will not pay off until this incentive structure is

16 Transparency in the Americas taken seriously. For example, Hong Kong has scruti­ judicial reform, institutional improvements, and eco­ Corruption = nized each step of public enterprise activity for bribery nomic policy measures all must factor into an effective Monopoly+ opportunities. Individual acts of corruption are rela­ strategy to fight corruption. tively easy to document by tracking money flows, but Deciding which policy measures to undertake re­ Discretion - where corruption is systemic, targeting individuals will quires an exact diagnosis of the location and extent of Accountability have little effect because incentive structures drive cor­ corruption. New diagnostic tools have been specifically ruption. designed and tested, but often are based in a broad con­ Dr. Klitgaard recommended using confidential in­ ceptual framework that goes beyond corruption. They terviews to reveal how incentives are structured, par­ are multidimensional, addressing a mix of corruption ticularly in government processes where corruption is problems simultaneously, and multipronged, analyzing rampant: public procurement, licensing, and public offi­ data from many sources. Importantly, they are also ex­ cials' appointments. Interview subjects who are per­ periential, analyzing actual experience with corruption, suaded that researchers are deconstructing systems, rather than testing perceptions alone. rather than pursuing corrupt individuals, are more These diagnostic tools have been applied widely likely to be forthcoming. Policy-makers then can de­ enough that comparisons are becoming available. Data velop "antibodies" that will alter incentive structures. show that successful efforts to reduce corruption will be Although this is not a panacea, it will reduce system participatory, involving not only top-level political sup­ vulnerability. port, but also steering committees and working groups. With a correct diagnosis and implementation of anti­ corruption initiatives, significant improvements can be Plenary...... 2 measured after just five years. This outcome supports Dr. Klitgaard's position of emphasizing immediate Transparency Strategies policy initiatives, as well as longer term efforts to change how people view corruption.

The World Bank's tactics Eigen's stance on tTansparency At the second plenary, Dr. Kaufmann discussed how the Reiterating Shimon Peres' statement that government World Bank is eliminating corruption from its projects, no longer deters corruption, but business is well­ integrating anti-corruption efforts into country assis­ equipped to affect change, Eigen emphasized that civil tance strategies and lending programs, supporting inter­ society's role is clear. It must identify and define corrup­ national efforts to curb corruption, and helping coun­ tion, build coalitions to foster transparency, create a tries that request special assistance, including Bolivia, culture supportive of anti-corruption actions, and Nicaragua, Ecuador, and Venezuela. develop a cool-headed professionalism in those efforts. With more data available about corruption pat­ Eigen highlighted several approaches to building terns, it appears that corruption varies within countries transparency. These included supporting the freedom across time, its effects on investment vary widely, of information movement and efforts to protect journal­ judiciary reform is not always linked to reform of gov­ ism, increasing the judiciary's independence, demand­ ernment bureaucracies, and bribery fuels tax evasion ing transparency in financial sectors, and forming integ­ and unofficial economies. Regulatory intervention, rity pacts to assure honest public procurement. discretion, and monopolistic power tend to correlate Citing The WalL Street]ournal survey that indicated highly with corruption, and some theories suggest they more than 90 percent of latin Americans believe cause it. corruption has worsened, Eigen reiterated Transparency But if the data help define the nature of the prob­ International's (TI) commitment to fighting lem, they also guide us to policy remedies, said Dr. corruption. Kaufmann. Financial controls, public oversight, legal-

The Carter Center • Latin American & Caribbean Program 17 How the OECD handles corruption t mtionahrlan withLhe-full:owingmeasures- to-a ddress The Organisation for Economic Co-operation and De­ corruption: velopment (OECD) convention will work if its member 0 Privatize the most important sectors of the states' laws and their implementation are evaluated, economy. said Dr. Pieth. Legislation is complex, including such 0 Simplify and eradicate loopholes in government diverse elements as tax deductibility, criminal Law, and contracting. corporate liability. Peer review, plus interviews with 0 Foster transparency in procurement. local officials, the private sector, and civil society, will 0 Engage international cooperation to combat cor­ be the basis for analysis. ruption. The OECD is successful because its membership is representative, there is a climate of competition, and Why credible information boosts economies implementing the convention requires no unifying Jack Guynn, president and chief executive officer of the rules. Federal Reserve Bank of Atlanta, spoke to conference International law is changing its perspective re­ participants during lunch about why the free flow of garding corruption, stressed Dr. Pieth. Traditional in­ accurate information is essential for healthy economic struments like conventions are being enhanced with markets. "soft law," such as peer agreements. Citing the work of George Akerlof, he noted that when sellers have more information about the quality Ecuador's transparency challenges of goods than buyers, good and bad products must sell The plenary morning concluded with President Jamil at the same price, and the market price favors the poor Mahuad's remarks on Ecuador. He noted that the TI quality goods, or "lemons." This principle also applies Corruption Perception Index ranks Ecuador among the to stocks, bonds, commodities, labor, and any produc­ 10 most corrupt countries in the world. Consequently, tion process. The buyer must assume the worst and pay he accepted President Carter's help and invited all or­ a low price. This drives legitimate sellers out of the mar­ ganizations in Ecuador and some others worldwide to ket and reduces aggregate demand. lend ass istance. For example, the 1997 Asian financial crisis re­ Ecuador's first challenge was to gamer support for sulted because the Thai government did not release ac­ the anti-corruption initiative and gather related data. curate information about its reserves, said G uynn. Simi· As a result, it asked the World Bank Institute to help larly, certain accounting practices obscured the true fi­ conduct a diagnostic survey, which was implemented in nancial position of savings and loan institutions and the spring of 1999. consequently created a crisis in the United States in the Ecuador's Ecuador also is strengthening its community values late 1980s. first and has developed a national plan that incorporates Transparency may be inconvenient, expensive, and civil society and the government. The plan takes an often personally uncomfortable for policy-makers, but challenge integrated, comprehensive, modular approach that Guynn argued that government intervention to assure was to spans from prevention to punishment. Prevention is transparency is warranted, benefiting private firms and primarily based on enacting laws and heightening Ecua­ society as a whole. It can improve pricing and asset gamer dorians' sense of ethics and values. President Mahuad valuation and help prevent policy mistakes and overre­ support for emphasized the media and schools' role in educating action when problems occur. the masses and the importance of offering timely, rel­ Establishing transparency is part of establishing the anti, evant, and transparent information. government credibility. It requires submitting to the corruption The Ecuadorian government still suffers weak­ accountability that the democratic process provides and nesses. However, it is combining specific elements of its the Legal recourse offered through an independent initiative . judiciary.

18 Transparency in the Americas Rapporteurs Report: Working Group A and candidates and limits on ways to spend funds. However, other participants had concerns about The Political, Business Nexus setting such limitations. 0 To regulate financing, we discussed: Chair: Former Ecuador President Osvaldo Hurtado • Shortening the campaign period, although par­ Facilitator: Dr. Robert Pastor ties wou ld still need funds before and after cam­ Rapporteur: Dr. )an Barton paigns. • Recognizing that most campaign expenditures Our group discussed three issues: party and campaign (perhaps 80 percent to 90 percent) pay for TV and finance, conflicts of interest and illicit enrichment, and radio advertisements. The state could either pur­ business codes of conduct. Though we all agreed on the chase that time for parties or candidates or, alterna­ seriousness of these issues and on the general principles tively, require any company purchasing a TV or expressed below, we adapted the topics to accommodate the radio license to provide this time for candidates differences in each country or region. and parties. 0 We agreed certain institutions need to be respon­ Party and campaign financing sible for monitoring the reporting and disclosure Clear and strict laws are necessary to assure people that requirements. Several participants suggested that the political and electoral process remains accountable the Electoral Tribunals monitor the reporting, and to them, not to the wealthy, special interest groups, attorneys general or procuradores prosecute law Any system narco-traffickers, or tainted money. violators. We support timely and reliable reporting and dis­ of assuring closure requirements for income, in-kind donations, Conflicts of interest and illicit enrichment transparency and expenditures that parties and candidates receive. The private interests of individual government deci­ However, identifying the sources of smaller amounts of sion-makers, private citizens, or special interests that in governance, funds is unnecessary. secretly use bribery or assurances of future compensa­ such as Our group also agreed that any system of assuring tion should not affect government decisions, the group transparency in governance, such as auditing and pros­ agreed. auditing and ecuting corruption, requires a strong, active, and inde­ Policies must respect that industrialized and devel­ prosecuting pendent legislature, judiciary, civil society, media, and oping countries face significantly different problems. comptroller generals. For example, the U.S., the United Kingdom, and corruption, Additionally, we discussed various formulas for as­ Canada have complex financial disclosure requirements requires a suring that the campaign financing system enhances to prevent conflicts of interest. However, the larger public participation and party and candidate competi­ problem for Latin America and the Caribbean is the strong, active, tion, and reduces the influence of money or other bi­ need to avoid public officials' illicit enrichment. and indepen, ases. For example: The group recommended that a special office re­ 0 Some form of public financing could help ensure ceive financial disclosure forms (declaration of assets) dent legis/a, party compliance with various election regulations, at the beginning of an official's service to remedy illicit ture, judiciary, such as reporting requirements and no violence. enrichment. The office then could monitor the assets Some believed public financing could encourage periodically- perhaps every two years-and review civil society, broader contributions and more involvement in the forms when the official's term ends. media, and elections if individuals could receive a tax deduc­ While most agreed that financial disclosure is im­ tion for a minimal contribution. portant for the most senior officials and some other rep­ comptroller 0 Some participants felt there should be limits on the resentatives, the group disagreed on whether the public generals. amount and kind of contributions made to parties could access these forms and which officials must file

The Carter Center • Latin American & Caribbean Program 19 An integrity them. Perhaps international organizations or scriptive (mandatory) and suggested elements in the Transparency International could develop further OAS Convention. Currently, only 15 of 34 OAS mem­ signed pact, model sl:atutes. ber states have ratified the Convention. No~:ably, two by CEOs major OECD players - the USA and Canada - have Business codes of conduct not ratified the OAS Convention. and govern, Although our group endorsed business codes of con­ Dr. Mark Pieth, chair of the OECD Working ments, could duct, we agreed that they should not replace clear na­ Group on Bribery in International Commercial Trans­ tional laws prohibiting bribery. Businesses, however, actions, helped the group distinguish the difference be­ assure that could use those laws as the "floor" on which they insist tween the OECD and OAS conventions. For example, all contracts that their employees comply with higher standards. the OAS text con~:ained variou concepts and elements Civil society should discuss these codes so that corpora­ not included in the OECD context, including illicit prohibit tions are sensitive to people's concerns and people are enrichment, mutual legal assistance, and extradition. bribery of aware of the corporations' work to be good citizens. Dr. Pieth remarked that as a regional document, the We recommended that the World Bank and the OAS text resembles language used in the Council of any kind. Inter-American Development Bank require corporate Europe text and must satisfy a range of competing inter­ codes of conduct to bid on bank-financed projects and ests within Latin America and the Caribbean. In con­ countries keep registers of approved contractors based trast to the OECD text, the OAS text does not men­ on their codes. We also supported having an integrity tion monitoring. pact, signed by CEOs and governments, to assure that all contracts prohibit bribery of any kind. The efficacy of the OAS Convention After vigorous exchanges regarding whether the OAS Convention is useful since all its member sl:ates have Rapporteurs Report: Working Group B not adhered to it, Jorge Garcia of the OAS Office for Legal Information clarified these points: 0 The OAS Convention was the first international Implementing . treaty about corruption. Therefore, it has advan­ International Accords tages and disadvan1:ages, such as a wider scope, but no monitoring clause. Chair: Fonner Bolivia President Gonzalo Sanchez de 0 The Convention is and will be difficult to precisely Lozada implement because of its wide-ranging implications Facilitator: Ms. Nancy Boswell for changes to domestic legislation (preventive Rapporteur: Ms. Nobina Robinson measures, criminal code reform, judicial reform, banking reform, extradition). Our group discussed the status of the Inter-American Con­ 0 The fight against corruption is a process, and the vention Against Corruption of the Organization of American Convention is only one tool. States (OAS), and how tO continue encouraging OAS mem­ 0 The OAS secretariat is working with lOB financ­ ber states tO sign, ratify, and implement the Convention. ing to assist 12 countries to implement the Con­ vention through training workshops and seminars. OECD, OAS Convention differences 0 OAS members states can request monitoring Discussions began with an overview of the 1996 Con­ requirements through the annual OAS General vention, which defines corruption more broadly than Assembly. the Organisation for Economic Co-operation and Development (OECD) Convention on Combating No U.S., Canada. support Bribery of Foreign Public Officials. There are both pre- Because neither the U.S. nor Canada has signed the

20 Transparency in the Americas OAS Convention, some participantS thought this sends 0 Promptly ratify the OAS Convention Against Cor­ TheOAS a mixed message to the rest of the hemisphere. Smaller ruption as per their commitments in the Plan of Convention and less developed countries of the region are overbur­ Action of the Santiago Summit of the Americas. dened with reporting requirementS and conditions for 0 Create a peer review mechanism that will promote could lose donor aid, while the most developed countries of the consistent and effective implementation of the momentum region have not signed, ratified, and implemented the criminal code changes and preventive measures, Convention. and ensure sharing of best practices and model unless more One response to this situation was to urge all other laws. countries OAS member states to quickly sign and ratify the Con­ 0 Request that a provision by the lOB and the World vention to pressure the northern hemispheric states to Bank cover all necessary technical assistance for sign., ratify, do likewise. capacity building to enable and support full imple­ and imple, U.S.-based commentators also noted that, unlike mentation of the Inter-American Convention. with the OECD Convention, the Senate Foreign Rela­ ment its tions Committee has not entertained legislation to requirements. ratify the OAS Convention, believing it is insufficient without monitoring requirementS. Rapporteurs Report: Working Group C ParticipantS further explored the OECD Convention's monitoring process. They concluded that Civil Society and as a confidence-building measure, a peer review mecha­ nism could serve the OAS Convention better than an Access to Information evaluation or assessment tool. Peer review, based on Chair: FarmeT Costa Rica President Rodrigo Carazo expertS meeting from each member state, would lessen Facilitator: Dr. Luis Moreno Ocampo the overt politicization of the monitoring process and Rapporteur: Dr. Henry F. Carey avoid turning monitoring into "certification." This re­ view also would result in more positive, constructive approaches that look at achievable objectives, share Working Group C discussed the obstacles that nongooem­ best practices, and keep focused on the progressive fight mental organizations (NGOs) face when crying to obtain against corruption. useful information to combat corruption. Much analysis In the same vein, other participantS from the de­ focused on state data , rather than how to structure NGOs veloping OAS countries also called for capacity build­ and the media to obtain it. Following the dictum that "form ing and technical assistance for member states to help follows function," the discussants felt that NGOs will self­ implement OAS Convention requirementS. They sug­ organize if the right information becomes auailable. gested that the OAS assume this role. Most agreed that the OAS Convention could lo e Differences exist about solutions momentum unless more countries signed, ratified, and There was little disagreement about: the absence of implemented itS requirementS. ParticipantS also gener­ panaceas; the long amount of time required to reduce ally established that there is more to do to ensure that corruption; the incentives for corruption in poor and civil society organizations in each OAS member state weak societies, with low salaries for public officials and are aware of the Convention's existence. cultural expectations of corruption; and the value of useful information. Latin American countries have rea­ Recommendations sonable laws on paper; the problem is with implement­ With these discussions in mind, the group urged all ing them and NGOs verifying them. OAS member states at the June 1999 meeting of the While no one doubted the value of a trial-and-er­ OAS General A embly to: ror approach, significant differences emerged about: the

The Carter Center • Latin American & Caribbean Program 21 pplicability of common-sol.utiens-in--the--three-mai ust-be more research in the following-areas: regions of Latin America; whether civil society should 0 Participants di agreed about whether NGOs have treat corruption as a systemic or moral problem; and obtained or circulated inaccurate, impressionistic, whether solutions should focus on the short or long or unsubstantiated denunciations, based on rumor term. and disinformation, or whether they have acted with integrity and effectiveness. Consensus on the nature of the problem 0 Some viewed privatization, if conducted honorably, Our group, however, did agree on the following: as panaceas, while others saw it inevitably as a 0 Weak societies have difficulty monitoring and large source of corruption. keeping vigilant over comparatively strong states. 0 While everyone favored education in theory, they Civil society is unable to pressure weak or corrupt disagreed about whether education has focused in­ police and judiciaries that lack independence and sufficiently on specific projects. Some emphasized

Foreign incentives to pursue government corruption. Some the greater need for having a functioning judiciary, bribery countries have no NGOs monitoring corruption, arguing that unless official corruption is punished, and those that do, often do not know what infor­ even exposure is not going to change deeply rooted results not mation to acquire and scrutinize. The group clearly cultural practices. Others felt that if foreign NGOs only in moral accepted the need to encourage political panicipa­ train and educate domestic NGOs and state per­ tion and increase social control, following the anal­ sonnel in criminal justice, the effects would be too degradation, ogy of human rights monitoring by NGOs and diffused and long-term to restore confidence in de­ but also the newspapers. mocratization and rule of law. 0 Public opinion is resigned to corruption. Elections 0 Many participants placed responsibility on foreign displacement do not raise the issue, and candidates make no businesses, governments, and aid agencies for en­ promises to reduce it. There must be a public dis­ couraging and failing to control corruption - par­ of local pro~ course on attacking, rather than accepting, corrup­ ticularly since these areas permitted large contracts duction that tion. for foreign procurement which sometimes resulted otherwise 0 NGOs, even where they are robust, have insuffi­ in kickbacks to public officials. cient access to information. They need, for ex­ Foreign bribery results not only in moral degra­ would help in ample, standard information on procurement dation, but also the displacement of local produc­ development. prices. tion that otherwise would help in development. 0 There is a tendency to have "the fox watch over Where foreign projects involve environmental the chicken coop." Regulation of corruption should harm, foreign-sourced corruption is doubly evil. not be left to banks or corrupt prosecutors. Civil However, other participants from the industrialized society should fight for independent comptrollers countries regarded this polemic as an exaggeration who have unquestioned integrity. This office that ignored the pervasive corruption among na­ should take complaints of corruption, as should tionals in developing countries. specialized NGOs focusing on corruption. Cur­ 0 Some participants advocated systemic improve­ rently when there is pressure, it is for individuals to ments, such as control systems, open and competi­ step down, not for change in the system, making tive bidding, privatization, and tariff reduction, accountability difficult. which open the economy to competitive prices and thus reduce the opportunity for corruption. They Views split on current methods maintained that accusations against individuals Substantial dissensus existed on what corruption-fight­ provoke a defensive posture- fair or not - mak­ ing methods NGOs actually have tried, implying there ing it difficult to work for reform. Therefore, an

22 Transparency in the Americas impersonal "report card" on systemic improvements Rapponeurs Repon: Working Group D could suffice, without naming names, based on sur­ veys of the public, business, and government lead­ The Role of the Media en.. Chair: Minister Benjamin Other discu ants supponed protecting the press Ecuador Foreign Ortiz Facilitator: Dr. McConnell from slander and libel laws when printing criticism Shelley Rapporteur: of public officials, except where there is malicious Ms. Debbie Palmer intent. Many Latin countries have "insult" laws that criminalize criticism and freeze free speech. South America and Mexico journalists discussed the media's role in combating corruption, obstacles to effective investiga­ Recommendations tive journalism on corruption cases, and possible ways to The group concluded that many different methods, re· overcome them. Unlike other working groups, dialogue was

vised over time, could help NGOs obtain information. on the record and Coca-Cola Company executives and When Consequently, it suggested that: others observed. authorities 0 Leaders mandate national plans at all branches and levels of government and society. Each plan should Countries' response to press investigations block access contain management information to reveal corrupt Participants agreed that the process of political transfor­ to informa, pricing and contracting, as well as reduce the op· mation and democratization in Latin America has portunities for corruption in government procure· changed journalism, Largely for the better, but problems tion and ment and other forms of private contracting. remain. There are three basic patterns of response to impede 0 Countries develop a database containing: press investigations in the hemisphere: • Succe ful or failed anti-corruption initiatives; 0 Journalists can investigate freely in some countries. investigation, • Comparisons of procurement and privatization 0 Authoritarian regimes exerci e power by over- they deny prices and indicators of corruption; whelming taxation and financial pre ure, or apply­ • Surveys of public perceptions of corruption rates; ing discretionary power over the issuance of radio the people and or TV broadcasting licenses to control the media. the right to 4) Quarterly repon cards on service delivery and 0 There are regimes in which the links between the efforts to reduce corruption. newspaper owners and the political establishment know about 0 NGOs receive training in: represent collusion and lack of transparency. Cor· public • New technologies, including the Internet, ruption in such situations is an act of power and surveys, and media; intrinsic to the political and economic systems, not affairs. • Monitoring procurement; and merely an isolated instance. • Lobbying for transparency. 0 Legislatures pass freedom of information statutes Effects of impeded information and ban "insult laws." When authorities block access to information and im· 0 Governments hold pubLic hearings and require pede investigation, they deny the people the right to Internet publication of contracting opportunities know about public affairs, and leave the press to specu· and results. Late and feed on rumors. 0 Countrie develop independent ombudsman and The main effect of investigative journalism is to comptroller offices ami take confidential citizen and fight corruption, but at the same time, there are some NGO complaints about corruption. negative outcomes. If there is constrained access to in· formation, investigative journalism sometimes erodes into unsupported denunciations that make headlines

The Carter Center • Latin American & Caribbean Program 23 and-sell pap~. borultimately-unden:utthemedia' much better chance--of producing reliable informa­ credibility. If judicial systems do not function well, the tion on corruption than those who live from day­ journalist becomes both reporter and judge, and some­ to-day on fees received for their daily stories. times excessively politicizes the information. 0 Journalists need better training to conduct good investigations. Education and increased economic The incentive Recommendations resources also will improve the quality of investiga­ 0 Access to information is absolutely crucial. Secur­ tive journalism. Nonetheless, most participants to engage ing this access in law is a fundamental necessity. seemed to feel that money and training are less im­ in effective When official papers remain confidential, govern­ portant than the journalist's values and commit­ ments use these restrictions to prevent critical ment. Good investigative journalism will result if investigative analysis. Official documents should be open to pub­ journalists understand their basic social function: journalism lic inspection every day, without requiring burden­ Provide people with information. some paperwork or delays. 0 The incentive to engage in effective investigative substantially One model we discussed was Colombia's legal journalism substantially reduces when there is a reduces when system for access to information. lt requires govern­ repeated lack of follow-through from the judicial ment release of the requested document within system. there is a days, although it only works if journalists know a 0 Drug trafficking is central to corruption in some repeated lack document exists and are willing to demand it. countries, as is money laundering. Although such 0 Periodic denunciation of scandals is no substitute linkages can increase the dangers involved in in­ offolfow,up for real investigative journalism. Still, there were vestigative journalism, many professions carry risks, from the opposing views concerning the value of special in­ and journalists should not shrink from their duty. vestigative units. Some felt that properly speaking, 0 Journalists dedicated to investigation must multiply judicial all journalism is investigative in nature. Others their contacts, exchanging experiences and infor­ system believed that salaried reporters, who are given two mation through expanded networks on the months to freely investigate a scandal, have a Internet and elsewhere.

24 Transparency in the Americas Final Statement Council of Presidents and Prime Ministers of the Americas Wednesday, May 5, 1999

orruption is one of the principal threats to LACP Director Dr. Jennifer McCoy (far !.eft) joins democracy, growth and equity in the hemi (l-r) former Paraguay President Juan Carlos Wasmosy; sphere. It distorts public services, deters in­ former Costa Rica President Rodrigo Carazo; Trinidad C and Tobago President Arthur Robinson; former First vestment, discriminates against the poor, and destroys Lady Rosalynn Carter; former U.S. President Jimmy public confidence in democratic governments. This was Carter; former Colombia President Alfonso L6pez­ the starting point of two days of discussion at The Michelsen; former Panama President Nicolas Ardito­ Carter Center by hemispheric leaders, members of the Barletta; former Bolivia President Gonzalo Sanchez private sector, journalists, and NGOs. Representing the de Lozada; and Ecuador President Jamil Mahuad. Council of Presidents and Prime Ministers, a group of 32 former and current heads of government from Latin America and the Caribbean, the leaders in this confer­ fore reach across borders. We are also aware that cor­ ence concluded that progress toward transparency can ruption is systemic, affecting all aspects of society, and be achieved where civil society and governments work consequently there will be no quick fix. The solutions, together to overcome opposition from vested interests. too, will need to be systemic, engaging society broadly Indeed, important progress has been made already. and tackling the problem from several directions at Participants from two dozen countries discussed once. strategies, including implementation of international Rich discussions yielded creative ideas about prac­ conventions against corruption, the role of civil society tical first steps. Here are some of our conclusions: including media and the private sector in promoting First, we recognize that although corruption is an ethi­ transparency, and measures to increase accountability cal issue, it is also a policy problem, meaning it can be in government-business transactions. The group en­ remedied by setting and enforcing rules that encourage countered a diversity of opinion, driven by the very dif­ people to do the right thing. It is a crime of calculation. ferent social and economic contexts in the region, and Where the benefits outweigh the penalties for illicit recognized that solutions will necessarily need to be behavior, systems can provide incentives for corruption. tailored to each country. Furthermore, some sources of A shorthand description is Corruption = Monopoly + corruption are international, including multinational Discretion- Accountability. The task is to remove the corporations and narco-trafficking, and small countries opportunities provided by monopolies and discretionary may be particularly vulnerable. Solutions must there- decision-making power, and increase the costs of cor

The Carter Center • Latin American & Caribbean Program 25 ruption through detection and enforcement of a toring by a special office. nation's laws. 0 National laws prohibiting bribery, which might be The good news is that there are solutions, and im­ developed via a model statute process. provements can begin immediately. But it takes civic 0 Business codes of conducts and compliance pro­ courage and commitment from leaders, international grams as a prerequisite to bid on World Bank and lenders and other organizations, coalitions of businesses IDB -financed projects, or to appear on national and NGOS in civil society, to illuminate previously registers of approved contractors. dark comers of government transactions. The antidote 0 Streamlining of public procurement laws and broad to corruption is information, committed leadership, col­ deregulation. lective action and clear rules. Fourth, transparency is the first step in combating Second, it is time to move from denunciations to corruption, but it requires a media and civil society diagnosis. Hard data is necessary to combat the prob­ capable of accessing information and then using it to lem, and it is now possible to get it. New diagnostic demand accountability from their governments. We tools, including analyses and interviews of businesses, recommend: citizens and public officials, are now available from the 0 Laws be enacted that require governments to open World Bank and others to provide a map of the nature up and provide documentation about their budget­ and Location of corruption in public and private organi­ ing and spending procedures so that citizens and zations. This information that can be used to devise journalists can have the infonnation they need to national action plans for every segment of the society. understand and evaluate what their governments We encourage governments to carry out these diagnoses are doing; and made them public, and then to challenge every 0 Training NGOs to use new technologies, including branch of the government and civil society to create the internet, and to monitor privatization and pub­ action plans to resolve their specific problems. lic contracting; Third, as democracy has begun to consolidate more 0 Publication of public contract awards, dates of de­ broadly in the hemisphere, one dilemma it has intro­ livery of goods, schedules of payments, and the bid­ duced is how to finance campaigns and political parties ding process in privatizations; without leaving elected Leaders obligated to special in­ 0 Quarterly report cards on the service delivery qual­ terest groups, narco-traffickers, or tainted money, or ity in certain sectors, such as health, as well as on without spending vast quantities of money that is des­ efforts to reduce corruption via the national action perately needed for development. The interdependence plans; of the public and private sector is highlighted by busi­ 0 Databases about civil servant credentials in order nesses dependent on public contracts for their liveli­ to prevent nepotism and patronage; hood, and political parties dependent on private contri­ 0 Public hearings to provide opportunities for citizens butions. Opening up those transactions through specific to give input on priorities for public works projects disclosure mechanisms will begin to level the playing and bid requirements within budgetary limitations field. We recommend: 0 Formation of regional informational networks and 0 Enforcing existing laws and strengthening regula­ databases so that citizens can learn about access to tion, oversight institutions and audit capacity. information and share successful strategies to com­ 0 Regulation and disclosure requirements for income bat corruption. and expenditures of parties and candidates; Fifth, we wish to emphasize the importance of a 0 Reducing campaign expenses by limiting the cam­ free press in promoting transparency and democracy. paign period, and fostering free media time on TV The status of press freedom in the hemisphere is some­ and radio under equal conditions; times discouraging. The Inter-American Press Associa­ 0 Financial disclosure requirements for public offi ­ tion recently found that fourteen countries have press cials, elected or appointed, to avoid conflict of in­ laws that place regulations on freedom of the press. terest and illicit enrichment, with periodic moni- Seventeen countries have so-called insult Laws that can

26 Transparency in the Americas per their commitments in the Plan of Action of the Santiago Summit of the Americas; 0 Creation of a peer review mechanism that will pro­ mote consistent and effective implementation of criminal laws and preventive measures, and which will share best practices and model laws; 0 Provision by the IDB and World Bank of all neces­ sary technical assistance for capacity building in order to enable and support full implementation of the Inter-American Convention. result in imprisonment for journalists convicted of criti­ The corruption issue is one of concern to all na­ cizing government officials. Eight countries have laws tions, and should receive attention at the highest lev­ requiring licensing of journalists or mandatory member­ els. Here we want to commend U.S. Vice President AI ship in associations. In the last decade, 203 journalists Gore for his global forum last February. have been killed in the Americas, a human rights situa­ In closing, we want to emphasize the need for ethi­ tion so deplorable that the region's presidents and cal values not only in government but in businesses, prime ministers asked the OAS last year to establish a journalism, banking and indeed every walk of life. Per­ special office for preventing such incidents, which the haps most important are the messages we convey to our OAS has done. Only six countries in the hemisphere children through education in schools and churches, as have laws dealing with the right of access to informa­ it is they who will pay the price if we fail to act now to tion that are considered effective. stem this ill. We are committed to carrying our trans­ To support professionalism in the media, and avoid parency work further, and we hope you will join us in unsupported denunciations that make headlines and this important endeavor. sell papers but undercut the media's credibility, we rec­ ommend: 0 Development of laws that will secure access to in­ • Jamil Mahuad Witt, president of Ecuador formation by making official documents open to • Said Musa, prime minister of Belize public inspection without undue delay or burden­ • Arthur Robinson, president of Trinidad and Tobago some paperwork. • Nicolas Ardito-Barletta, former president of Panama 0 Expansion of programs to train the press to conduct • Rodrigo Carazo, former president of Costa Rica solid investigations based on evidence. • ] immy Carter, former president of the United States of 0 Strengthening of the judicial system's capacity to America investigate and prosecute corruption where the • Osvaldo Hurtado, former president of Ecuador evidence indicates it is merited, such that no one is • Alfonso Lopez Michelsen, former president of tried in the press and innocent citizens have an Colombia opportunity to defend their good names in a just • Gorualo Sanchez de Lozada, former president of court. Bolivia Sixth, we are convinced that recent treaties, in­ • Juan Carlos Wasmosy, former president of Paraguay cluding the OECD Convention Against Bribery and • Ambassador Richard Bernal, representative of the Inter-American Convention Against Corruption jamaica Prime Minister P.]. Patterson are important steps in bringing a common approach to • Daniel Romero, representative of former Venezuela solving both the demand and supply side of bribery. But President Carlos Andres Perez they will only be effective when fully implemented by • Jose Miguel Villalobos, representative of Costa Rica signatory countries. We urge member states of the OAS President Miguel Angel R6driguez at their June 1999 General Assembly to call for: 0 Prompt ratification by all OAS member states as

The Carter Center • Latin American & Caribbean Program 27 About The Carter Cent@r

The Carter he Carter Center strives to relieve suffering by Charitable contributions from individuals, founda­ Center works advancing peace and health worldwide. With tions, corporations, and other donors support the to prevent T a fundamental commitment to human rights, Center's activities. Resident experts or fellows direct and resolve the Center is guided by the principle that people, with the programs and design and implement activities in conflicts, the necessary skills, knowledge, and access to resources, cooperation with President and Mrs. Carter, networks can improve their own lives and the lives of others. of world leaders, and parmers in the United States and enhance Founded in 1982 by Jimmy and Rosalynn Carter in abroad. freedom and partnership with Emory University, the nonprofit The Center i.s located in a 35-acre park, two miles democracy, Center works to prevent and resolve conflicts, enhance east of downtown Atlanta. Four circular pavilions and improve freedom and democracy, and improve health. The house offices for the former president and first lady and health. Center collaborates with other organizations, public or most of the Center's program staff. The complex in­ private, in carrying out its mission. In this way, the cludes the Ivan Allen III Pavilion and the nondenomi­ Center has touched the lives of people in more than 65 national Cecil B. Day C hapel, other conference facili­ countries. ties, and administrative offices.

28 Transparency in the Americas Adjoining the Center is The Jimmy Carter Library and Library and Museum are known collectively as The Museum, a repository for the records of the Carter ad­ Carter Presidential Center. ministration. The National Archives and Records Ad­ ministration of the federal government operates this More information about The Carter Center is available on facility which is open to the public. The Center and the the World Wide Web at www.cartercenter.org.

About the Latin American and Caribbean Program

he Latin American and Caribbean Program government throughout the hemisphere. This al­ (LACP) was established in 1986 and works lows us to identify and encourage leaders who have T with the Council of Presidents and Prime the political will to tackle this issue. Ministers of the Americas, a group of 32 current and 0 President Jimmy Carter has a personal reputation former heads of government from the hemisphere based for honesty and is known for creating the Foreign at The Carter Center. Corrupt Practices Act. During and after his presi­ The program's central goals are to promote democ­ dency, he has demonstrated concern for develop­ racy and improve inter-American relations. It has ment in Latin America and the Caribbean, making achieved these goals through election observation and The Carter Center a credible and welcome partner mediation in a dozen countries; conflict resolution ini­ for the region's leaders. tiatives in Haiti, Nicaragua, and Panama; and a series of 0 Because The Carter Center is an international high-level workshops and conferences to promote nongovernmental organization, we can work hemispheric cooperation in such areas as free trade, within civil society to help build bridges that con­ arms control, and the promotion of transparency. nect it with government. The Carter Center brings unique and needed skills 0 The LACP has developed its capacity for conflict and resources to the fight against corruption, as the mediation and monitoring of political and electoral World Bank, Inter-American Development Bank and processes, skills it can usefully apply in the trans­ Transparency International recognized when they en­ parency field. couraged the LACP to undertake the Transparency for 0 The Carter Center and the Council command me­ Growth project. These qualifications include: dia attention that spotlights corruption problems 0 Through its Council, the LACP has deep, direct, and disseminates information rapidly about suc­ and mu ltipartisan contacts at the highest level of cessful strategies employed to fight corruption.

The Carter Center • Latin American & Caribbean Program 29 Agenda

Council of Presiclents and Prime Ministers of the Americas ruption and improving transparency in government The Carter Center transactions? In Collaboration with the CNN World Report Conference • What is the responsibility of governments, parties, private sector, and media in finding and carrying out solutions? Transparency for Growth • Can corruption in government-business relation· May 3~5, 1999 ships be delinked from party and campaign finance?

Monday,. ~.ay ! ~ ?~~ 2:45 p.m. Strategizing the Solutions ? -5:15p.m. 6 p.m. CNN Opening Reception at Centennial O lympic Working Group A: The Political~Business Nexus Park • Regulation and disclosure of party and campaign 7:30p.m. Carter Center Opening Dinner at King & Spalding income and expenditures • Jennifer McCoy, Director, Carter Center Latin • Conflict of interest, illicit enrichment, and American and Caribbean Program- Welcome declaration of assets • Former President Jimmy Carter - Welcome • Corporate compliance programs • Tim Haas, President, Latin America Group, The Working Group B: Implementing International Coca~Cola Company - lntrcxluction Accords • United States Treasury Secretary Robert Rubin ­ • Ratification of the Inter-American Convention remarks • National strategies to implement the convention Dinner • Regional Working Group to monitor the conven· • Former President Carter -Intrcxluction tion • Costa Rica President Miguel Angel Rodriguez­ Working Group C: Civil Society and Access w remarks Information • Using freedom of information to promote transpar­ Tuesday, May 4, 1999 ency • Transparent public contracts: databases, public 9 a. m. Introduction and Background: Presiclent)immy Carter hearings, municipal social auditing 9:15a.m. Opening Plenary: The Causes and Consequences of • Transparent privatization processes: independent Corruption monitors • Enrique Iglesias, Presiclent, lnter~American Develo~ Working Group 0: The Media's Role in Combating mentBank Corruption: A Roundtable Discussion Among Working • Luis Moreno Ocampo, President, Transparency In~ Journalists ternational, Latin America and Caribbean • Robert Klitgaard, Dean and the Ford Distinguished 7 p.m. Dinner with CNN World Report Correspondents Professor, RAND Graduate School Inrrcxluctions: Former U .N . Ambassador Andy Young 10:45 a.m. Second Plenary: Strategies for Improving Transparency Former President Jimmy Carter • Daniel Kaufmann, The World Bank Institute Keynote Speech: PresidentJamil Mahuad, Ecuador • Peter Eigen, Presiclent, Transparency International, Berlin, Germany • Mark Pieth, Chair, OECD's Working Group on Wed~e~~~Y'. ~ay .s? ~ ?~~ Bribery in International Commercial Transactions 9 a.m. Report Out on Working Group Meetings and Group 11:30 a.m. President Jamil Mahuad: Ecuador's National Discussion Transparency Plan 10:45 a.m. Discussion of Final Statement Noon Luncheon Address: Jack Guynn, President, Federal 12 p.m. Lunch Reserve Bank of Atlanta 2:30 ~ Event at CNN: Statement of Conference Findings 1:30. Simultaneous Working Group Discussions 4 p.m. Moderated by CNN en Espanol Anchor Jorge 5:15p.m. Gestoso • Presentation of conference findings 1:30 ~ Diagnosing the Politics of the Problem • Current heads of state discuss their own 2:30p.m experiences Working Groups A, B, and C • Press panel on press freedom and credibility in Each working group discusses the following questions reporting on corruption (current and former heads of off~the~ecord : state pose questions to the journalists) • What are the political constraints to reducing cor~

3Q Transparency in the Americas Conference Participants

Current Heads of Scare and G011emment Representatives The Honorable Ram6n Development's Working Council Members Jimenez, attorney general, Group on Bribery in Interna­ The Honorable lvonne A­ Ecuador tional Commercial Transac­ The Honorable Nicolas Saki, ambassador to the Mr. Lorenzo Lazo, secretary of tions, Switzerland Ardito-Barletta, former United States, Ecuador government programs, Mr. Mark Schneider, assistant president, Panama The Honorable Miguel Veracruz, Mexico administrator, Latin America The Honorable Richard Aleman, governor, State of Mr. Alberto Leyton, executive and the Caribbean, United Bernal, representative of Veracruz, Mexico secretary of the Integrity States Agency for Interna­ council member Prime Min­ Dr. Maria del Carmen Araujo, Commission, Bolivia tional Development ister P.J. Patterson and am­ designate for National Anti­ Mr. Mike Orfini, advisor for Mr. Andres Solimano, direc­ bassador to the United Corruption Plan, Ecuador National Security Affairs to tor, Ecuador, Colombia, and States, Jamaica The Honorable Genaro the vice president, United Venezuela, The World Bank The Honorable Rodrigo Arriagada, ambassador to States Mr. James Spinner, deputy Carazo Odio, former presi­ the United States, Chile Ms. Rosamond Perkins, general counsel, Inter-Ame­ dent, Costa Rica Mr. Justo Pedro Castellanos, comptroller general, Minis­ rican Development Bank The Honorable Jimmy Carter, director, Office of Preven­ try of Finance, Liberia former president, United tion Again t Corruption, The Honorable Stephen Experts and Civil Society State Office of the Attorney Gen­ Potts, director, Office of The Honorable Osvaldo eral, Domm1can Republic Government Ethics, United Dr. Lloyd Barnett, law offices Hurtado, former president, Mr. Alfredo Corral Borrero, States of Lloyd Barnett, Jamaica Ecuador comptroller general, Ecuador The Honorable Clement Ms. Nancy Zucker Boswell, The Honorable Alfonso The Honorable Jaime Rohee, minister of Foreign managing direcror, Transpar­ L6pez-Michelsen, former Daremblum, ambassador to Affairs, Guyana ency International, United president, Colombia the United tares, Costa The Honorable Hector States His Excellency Jamil Mahuad Rica Romero Parducci, president, The Honorable John Witt, president, Ecuador The Honorable Flavio Dario Supreme Court, Ecuador, Brademas, chairman of the The Right Honorable Said Espinal, ambassador, perma­ The Honorable Robert Rubin, board, National Endowment Musa, prime minister, Belize nent representative of the secretary of Treasury, United for Democracy, and former Mr. Daniel Romero, represen­ Dominican Republic to the States U.S. representative tative of council member, Organization of American Mr. Bob Schiff, chief counsel Ms. Ana Virginia Calzada, former President Carlos States for the minority on the Sen­ president, Commission for Andres Perez, Venezuela The Honorable Carlos ate judiciary Committee's the Betterment of Adminis­ The Right Honorable Arthur Falquez Batalla, vice presi­ Subcommittee on the Con­ tration of Justice Robinson, president, dent, National Congre , stitution, United States (CONAMAJ), Costa Rica Trinidad & Tobago Ecuador Dr. Jose Miguel Villalobos, Ms. Carmen Amalia Cedeno, His Excellency Miguel Angel The Honorable Amalia government liaison for executive director, Action Rodriguez, pre ident, Costa Garda, senator, Mexico Transparency Project, Costa Against Corruption, Rica Mr. Rodolfo Gil, International Rica Dominican Republic The Honorable Gonzalo Affairs advisor to the gover­ Dr. Mariana Yepez, public Mr. Oliver Clarke, chairman Sanchez de Lozada, former nor of Buenos Aires Prov­ prosecutor, Ecuador and managing director, The Bolivian President ince, Argentina Gleaner, and former presi­ The Honorable Juan Carlos Mr. Anand Goolsarran, audi­ Inremational Organization dent, The Inter-American Wasmosy, former president, tor general, Guyana Representatives Press Association, Jamaica Paraguay Mr. Jack Guynn, president, Mr. Bertrand de SpeviUe, de Federal Re erve Bank of Mr. Jorge Garda Gonzalez, Speville and Associates, Council Executive Secretariat Atlanta director, Department of Le­ former commissioner of Mr. George Haynal, assistant gal Cooperation, Organiza­ Hong Kong Independent Mrs. Rosalynn Carter, vice deputy minister for the tion of American States Commission Against Cor­ chair, The Carter Center Americas, Department of The Honorable Enrique ruption, United Kingdom Dr. Jennifer McCoy, director, Foreign Affairs and Interna­ Iglesias, president, Inter­ Ms. Jocelyn Dow, Red Thread Latin American and Carib­ tional Trade, Canada American Development Women's Development bean Program, The Carter Mr. Roberto lzurrieta, com­ Bank Organization and managing Center, and executive secre­ munications officer to the Dr. Daniel Kaufmann, Eco­ director, Liana Cane Interi­ tary, Council of Freely Office of the President, nomic Development lnsti­ ors, Inc., Guyana Elected Heads of Govern­ Ecuador Lute, The World Bank Mr. Peter Eigen, president, ment, United States lng. Agustin Jarquln, presi­ Dr. Mark Pieth, profe sor of Transparency International, dent, Organization of Cen­ Criminal Law and Criminol­ Germany tral American Supreme Au­ ogy, University of Basel, Mr. Nicolas Espinosa dit Institutions and comp­ chair, Organisation for Eco­ Maldonado, president, Com­ troller general, Nicaragua nomic Co-operation and mission for C ivil Conrrol of

The Carter Center • Latin American & Caribbean Program 31 Conference Participants (continued)

Corruption, Ecuador Mr. Jaime Sanchez, consultant Dr. Melanie Oliviero, program Mr. Ricardo Uceda, chief of Dr. David Fleischer, professor, on project management and officer, Program fo r Global Special Studies, ELComerico, University of Brasilia, Brazil public contracts, Ecuador Security and Sustainability, Peru Mr. Bonaparte Gautreaux, Mr. Jim Wesberry, director, John D. and Catherine T. Mr. Jose Carlos Ugaz, lawyer editor, El Nacional, and Accountability Ami-Cor- MacArthur Foundation, and columnist, Peru Civic Society Monitor of the ruption, LAC, Casals & United States Mr. Alberto Valdez, political Privatization of the Domini- Associates, United States Mr. Chris Sabatini, senior pro- analyst, Multimedios America, can Republic Airport Sys- gram officer, Latin America Argentina tern, Dominican Republic Business and Ochers and the Caribbean, National Mr. Eduardo Vander Koy, Mr. Fritz Heimann, counselor Endowment for Democracy, political analyst, CLarin, to General Counsel, General Mr. Peter Bell, president and United States Argentina Electric, and chair, Tran spar- CEO, CARE Mr. Horace Sibley, senior part- Mr. Mauricio Vargas, director, ency International, United Dr. William Chace, presidenc, ner, King & Spalding, Cambio Magazine, Colombia States Emory University, United United States Mr. Raul Vargas, coordinator, Dr. Robert Klitgaard, dean, States Amb. Gordon Streeb, associ- Press and Radio RPP. Peru RAND Graduate School, Mr. Joe Creamer, vice presi- ate executive director, Peace Mr. Roberto Zamarripa, United States dent, United Parcel Service Programs, The Caner Cen- Reforma, Mexico Mr. Ronald MacLean-Abaroa, Mr. Neal Creighton, presidenc, ter, United States Ms. Angelica Zegers, journal- senior governance re- The Roben R. McCormick Mr. Pablo Zalaquett, CEO, ist, Revista Capital, Chile searcher, Central America Tribune Foundation, United Generaci6n Empresario, and Ms. Fabiola Zerpa, writer, El Project, Harvard Institute for States fellow, Eisenhower Founda- Nacional, Venezuela International Development, Mr. Michael Davies, chair, tion, Chile Bolivia Comminee on Corruption Rapporteurs Colonel Trevor MacMillan, and Business, Canadian Journalists from Latin America security advisory and man- Council of International Dr. Jan Barton, associate pro- agement, Jamaica Business, Canada Mr. Alvaro Javier Amoretti, fessor, Accouncing, Goizueta Dr. Valeria Merino, president, Mr. Pedro Pablo Dfaz, vice investigative journalist, EL Business School, Emory Uni- Center for Latin America president, Corporate Com- Pals, Uruguay versity, Venezuela Developmenc, Ecuador munications, Coca-Cola Mr. Gerardo Barraza, chief Dr. Henry "Chip" Carey, Dr. Luis Moreno Ocampo, Latin America, Chile economic section, La Repub- associate professor, Political president, Transparency Mr. Bob Elizondo, vice presi- Lica, Peru Science, Georgia State International Latin America, dent for Latin America Op- Mr. Robert Bonome, editor, University, United States Argentina erations, Americas Region, Revista Venecomomy, Venezu- Ms. Debbie Palmer, doctoral Dr. Trevor Munroe, professor, United Parcel Service ela candidate, Oxford Univer- Depanment of Government, Mr. Rudi Forster, acting man- Ms. Nivia Carralho, editor, sity, United Kingdom University of West Indies, aging director, Latin 0 GLobo, Brazil Ms. Nobina Robinson, senior and senator, Jamaica America, Delta A ir Lines, Ms. lnes Elejalde, political policy advisor, Canadian Mr. Benjamin Ortiz, director, Republic of Ireland editor, El Diario Expreso, Foundation for the Ameri- Causa Comun, and editor, Ms. Ana Guevara, manager, Peru cas, Canada Hoy, Ecuador, now foreign Public Affairs, United Parcel Mr. Jorge Fernandez, political minister Service, United States columnist, El Financiero, Latin American and Dr. Violeta Pallavicini, direc- Mr. Timothy Haas, president, Mexico Caribbean Program Staff tor, Center for Research and Latin America G roup, The Mr. Roberto Giusti, writer, Training in Public Adminis- Coca-Cola Company, El UniversaL, Venezuela Ms. Becky Castle, program tration, University of Costa United States Mr. Antonio Gois, sub-editor, coordinator, Latin American Rica, and member, Dr. John Hardman, executive 0 Dia, Brazil and Caribbean Program, The lntegridad Democratica director, The Carter Center, Mr. Juan Lozano, editorial Can er Center, U nited States Dr. Robert Pastor, Goodrich United States director, Cir:y Noticias, Dr. Shelley McConnell, C. White Professor of Inter- Dr. Anthony Imler, executive Colombia associate director, Latin national Relations, Emory director, Public Affairs, Mr. Gilberta Nascirniento, lsto American and Caribbean University, United States Merck & Co., Inc., United EMagazine, Brazil Program, The Caner Center, Dr. Lelia Rachid, executive States Ms. Laura Puertas, coordina- United States director, Club de Asunci6n, Ms. Charlene Kennedy, tor, Andean Media Group, Ms. Tanya Noelle Mujica, Paraguay regional manager, Govern- Peru program assistant, Latin Dr. Milda Rivarola, member, mental Affairs, Delta Air Mr. Ignacio Rodriguez, politi- American and Caribbean C lub de Asunci6n, Paraguay Lines cal analyst, Revista Milenio, Program, The Carter Center, Dr. Alasdair Roberts, associate Mr. Gideon Lichfield, Latin Mexico Mexico professor, Queen's Univer- American correspondent, Mr. Luis Salazar, chief of press, sity, Canada Economist, United States Canal 13 TV, Chile

32 Transparency in the Americas