The IACC Today - Day 4 by Transaprency International

11:30 - 13:00

14:00 - 16:00

16:30 - 18:00

PLENARY IV: PEOPLE POWER, TRANSITIONS AND CORRUPTION: WHAT IS OUR ROLE?

SPECIAL PLENARY: THE FUTURE OF FIGHTING CORRUPTION.

CLOSING PLENARY: DEFINING OUR FUTURE: COLLECTIVELY SHAPING THE GLOBAL GOVERNANCE AGENDA.

THE IACC TODAY SAT10NOV2012 ISSUE04

THE 15TH INTERNATIONAL ANTI-CORRUPTION CONFERENCE NEWSPAPER

INVESTING IN A BRIGHTER FUTURE Corruption “robs citizens and governments of resources that could be invested in a brighter future. Every bribe paid represents a hidden tax on the cost of doing business and a drag on economic growth.” In a message to the 15th IACC, the words of US Secretary of State Hillary Clinton opened our plenary session on dirty money. “We need to address the reality of the global shadow financial system,” said Raymond Baker of Global Financial Integrity, describing a spider’s web of tax havens, anonymous trust accounts, money laundering and trade mispricing that sees ten dollars exit developing countries for every dollar of aid that enters. Laid out end to end, said writer and investigator Nicholas Shaxson, “all the money in the offshore

system would reach five times the Earth’s orbit of the sun.” With this image lingering in the room, Shaxson drove home his point: “Tax havens are right at the centre of the financial system – they are not an exotic sideshow.” The responsibility, according to Baker, lies largely with developed nations. “We must address it as a problem of the rich countries the money is flowing into,” he said. Shaxson agreed: “If there is secrecy, we need to ask in whose interest this is…we are talking here about big OECD countries.” For those at the frontline of investigations, the environment can be extremely dangerous, said William Bourdon of SHERPA, recounting how his friends and colleagues had suffered death threats. One had been assassinated. It is time for “an international shield to protect a new generation of activists,” he said. Threats and intimidation must not derail efforts to bring the perpetrators of grand corruption to justice: “there can be no more immunity for those who destabilise democracy by looting public money,” Bourdon stressed.

WWW.15IACC.ORG

Progress is being made, said Therese Lee of Google. “We are in the middle of a sea change in anti-corruption,” she argued, citing the FCPA, the UK Bribery Act and China and Russia’s ratification of the OECD Anti-Bribery Convention as evidence. Explaining the impact new legislation is having on corporate behaviour, she urged the audience “to remember that corporations can be a very important change agent in the global fight against corruption.” So too can leaders. Brazil’s Minister for Justice José Eduardo Cardoso described efforts to tackle money laundering in the country through enhanced monitoring mechanisms, anti-corruption trainings and greater cooperation between government agencies. Echoing Hillary Clinton, Cardoso affirmed the government’s commitment to ending financial corruption. Such support is essential. As Raymond Baker put it, tackling illicit flows of money “is very much a matter of political will.”

TRANSPARENCY: THE BRAZILIAN WAY Mobilising people – it all starts with informed citizens. Just ask Amarribo Brasil, Transparency International’s national contact, which has grown from a small group of engaged volunteers into a national network of millions in only 13 years. From its roots in the São Paulo municipality Ribeirão Bonito, the group first came to prominence when its campaign for transparent politics led to the dismissal and arrest of council members and mayors involved in budget irregularities. Since then, it has used its experiences to show others how they too can fight for change. Through its network of organisations, Amarribo Brasil advises citizens throughout the country, particularly at the local level. It has held more than 200 seminars and distributed an estimated 150,000 copies of "O Combate à Corrupção nas Prefeituras do Brasil", a guide to lessons learned in the fight to end municipal corruption. Since 2003, they have also engaged young people in local politics with the national youth programme, Amarribo Junior. Raising awareness allows them to coordinate political and social pressure rapidly. When Amarribo led a petition in support of Brazil’s Law of Clean Record, 1.3 million people added their name to the list. The legislation, which promotes integrity in politics by prohibiting those with a criminal record from running for office, has since been passed.

TODAY

SOCIAL MOBILISATION AND INFORMATION SYSTEMS

09:00-11:00

Mobilising people against corruption is a challenge around the world. Incentives need to be in place to overcome inaction. But when these incentives have successfully galvanised large numbers of people into action, they have often resulted in short-lived movements unable of generating strategic information that can support long-term objectives. Join this discussion to hear about experiences from Argentina, Brazil, Colombia and Mexico.

PREVENTING PUBLIC OFFICIALS FROM ENJOYING THE PROCEEDS OF CORRUPTION: What more should the financial sector be doing?

Current regulatory frameworks and compliance mechanisms have been unsuccessful in stopping the flow of corruption proceeds through the banking system. Corrupt officials and individuals continue to enjoy the proceeds of their misconduct with impunity, at the expense of ordinary citizens. This session brings together representatives from NGOs, financial institutions and financial regulators to determine what needs to happen.

"Offshore money counted in dollar bills would stretch up to 5 times the Earth's orbit round the sun" - Nicholas Shaxon at #15IACC #15iacc - @anticorruption - Transparency Int'l

Now, as Brazil prepares to host the 2014 World Cup and 2016 Olympic Games, the organisation has been invited to join the national Clean Games Project, which seeks to ensure integrity in multi-million spending for the games’ infrastructure. It’s a long way from that first small group volunteers, yet Amarribo’s guiding principle remains the same: only when we have transparency and public participation, can we ensure fair play. www.amarribo.org.br

TWEET IT, LIKE IT, SHARE IT. GET INVOLVED! © Virginie Nguyen Hoang

People around the world are joining in 15th IACC discussions through Facebook and Twitter. Stay informed of what everyone is talking about and be sure to add your voice to the debates!

www.facebook.com/ InternationalAntiCorruptionConference www.twitter.com/15iacc #15iacc © Virginie Nguyen Hoang

TODAY'S PLENARIES: IN BRIEF

11:30 - 13:00 PLENARY IV: PEOPLE POWER, TRANSITIONS AND CORRUPTION: WHAT IS OUR ROLE? 14:00 - 16:00

THE FUTURE OF FIGHTING CORRUPTION:

Regime changes in the Arab region and elsewhere reaffirm that sustained collective pressure can bring about change. But power shifts do not necessarily lead to transparent and accountable governance systems that respect human rights. Political transitions are long and corruption can derail them. What can be done to secure smooth and successful shifts in power? What are the risks posed by corruption?

Forty-three per cent of the global population is under the age of 25. Young people have the potential to drive real change as today's citizens and tomorrow's leaders. Join this session to learn more about youth movements, how young people around the world are fighting corruption, and how they have the potential to take our fight to the next level.

2 October 2012 marked the first time in

Georgia's history that the country had a democratic transition of power.

1,600

More than people in Peru, from judges to politicians and the media, received bribes from Vladimiro Montesinos.1

US$4 billion of stolen money - the

amount President Salva Kiir of South Sudan asked current and ex-government employees to return.2

18 state agencies in Yemen went on strike in 2011 as workers demanded their bosses be replaced by those untainted by corruption allegations.3 American Public Media. 2BBC. 3Associated Press.

WHAT NEEDS TO HAPPEN?

50%

Nearly of the developing world population is youth and children.5

Over out of young people believe corruption is harming access to education and healthcare.6

25% of young people are trapped in jobs that keep them on or below the poverty line.7

193 countries are party to the UN Convention on the Rights of the Child.8

42% of Arab youth say corruption in government and public life is one of the biggest challenges in the Middle East, up from 16% in 2011.9 World Bank 2010. 5YouGov. 6UNESCO. 7UNICEF. Arab Youth Survey.

4 8

IS LOBBYING SO BAD?

SOCIAL

Is it the same to lobby for more resources to investigate cancer as to lobby to get more oil exploration permits? Ask a random member of the public and the answer will probably be no. Ask Karl Isaksson, and he will say yes without even blinking. Karl Isaksson is the head of European Public Affairs Consultancies Association (EPACA), which represents the interests of 42 lobbying groups in Europe, from manufacturing firms to finance companies. Some people were surprised that Isaksson accepted the invitation to participate in the 15th IACC; to defend the influence of lobbyists on public policy to this somewhat hostile audience is not easy. "It is important to explain what we do, if

Director, Integrity and Anti-Corruption Department, African Development Bank

SPECIAL PLENARY: THE FUTURE OF FIGHTING CORRUPTION.

PEOPLE POWER, TRANSITIONS AND CORRUPTION: WHAT IS OUR ROLE?

ANNA BOSSMAN

"Everyone wants to influence policy, lobbying is part of every society. What we must ensure is that it is transparent" people were more aware of our work, they would understand how important it is for democracy," he said. Lobbies have a bad reputation - society is suspicious of them, the press criminalise them, comedians ridicule them and some of the biggest corruption scandals feature lobbyists. But Isaksson argues that not only are lobbying practices not corrupt, they are good for democracy. In fact, he says the more the better. "Everyone wants to influence policy, lobbying is part of every society. What we must ensure is that it is transparent," he said. Excerpt from a blog post by 15th IACC Young Journalist María Delgado. To read the complete post please visit: www.15iacc.org/social-media

"Day 3 of #15iacc is coming to an end - only one day left! Let's make it count!"

People often talk about the risks facing foreign companies when doing business in Africa, but what are the risks for African countries doing business with foreign companies? I think the main thing is the killing of entrepreneurship. In Africa we say the small entrepreneur is really the one who drives the economy and when big foreign companies come in, they kill it. They kill it because they have more money. I’ll give you an example: my mother was running a small rental company. She was doing that all by herself. She didn’t need much capital to start off with, but she managed at one time to have about 15 people working for her, and they were just renting out tents, tables and chairs. And then these foreign companies came in. Obviously they had more money and they wiped them out. It’s a real pity because the small entrepreneur in Africa is the one who is helping all the others. What do you think needs to be done to restore trust in the world of finance? The first thing that needs to be done is to try and get all the money back. All the illicit outflows, all the money that has gone out – try to get it back. It is also important to have good legislation in place. But beyond legislation, because we can have very good laws, what you must also have is enforcement, and that is what we are lacking. Why don’t we have enforcement? Because of vested interests. The same people who set up the legislation are the same people who are going to make sure that the law doesn’t catch up with them. Therefore, when the law does catch up with them there are no sanctions against them. That’s the main problem. I think you’ve been hearing some of that during the sessions – the need to end impunity. It’s really a big, big problem. Legislation is good; you have to have legislation, but then you have to have enforcement. How do we make sure that natural resource wealth benefits citizens living in these countries? Again it’s a question of leadership, but it’s not only leadership; big companies must also play by the rules. I worked with a multi-national oil company. It was a long time ago, but at the time, I didn’t realise how much oil companies and mining companies were taking away and not giving back. Even when they were giving back, the compensation was never quite right. I was explaining to someone the other day that when you say that you are compensating somebody for the land that you have taken away, remember that the crops on the land they grow is for generations. When you give them some money you haven’t really rescued or compensated them. That’s a big problem. That’s what keeps the poor poor, all the time.

#15iacc - 15@iacc - IACC The above text is an edited excerpt from a video interview – the video will be available at www.vimeo.com/15iacc

EVENING EVENT

DID YOU KNOW? FUN FACTS ABOUT BRAZIL

São Paulo is the largest city in Brazil.

More than 50% of the world's production of orange juice is Brazilian.

As the 15th IACC draws to a close, we are delighted to welcome the three winners of the Fair Play Competition, musicians whose songs tell stories of how corruption affects people’s daily lives. Head down to the restaurant to enjoy the music and bid colleagues and friends farewell until next time.

Brazil is home to the longest beach in the world – the Praia do Cassino Beach – stretching over 250km.

The feijoada is Brazil’s national dish – a stew of beans with beef and pork.

19:00 - 21:00 Closing Cocktail

Brazilian women attained the right to vote in 1932.

DON'T MISS!

A musician plays at Thursday's social event.

HOW DO YOU SAY...? Hello - Oi

THE

Goodbye - Tchau

CORRUPTION CROSSWORD

Yes - Sim 1

No - Não 7

Good morning - Bom dia

Good afternoon - Boa tarde Good evening - Boa noite

Good night - Boa noite Thank you - Obrigada (women say), Obrigado (men say) 4

Many thanks - Muito obrigada

Please - Por favor You’re welcome - Denada My name is... - Meu nome é... Where is the... (toilet) - Onde fica o... (banheiro) How do I get to... (the station) - Como eu chego na .. (estaçao) Can you help me? - Voce pode me ajudar por favor? How much does this cost? - Quanto custa isso?

ACROSS

DOWN

1) To cheat. The act of intentionally deceiving someone in order to gain an unfair or illegal advantage (financial, political or otherwise). (5)

5) Fill in the missing word: Mobilising people: connecting of change. (6)

2) The offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal, unethical or a breach of trust. (7) 3) Situation where an individual or the entity for which they work is confronted with choosing between the duties and demands of their position and their own private interests. (8-2-8) 4) An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition. (7)

BRAZILIAN SAYING OF THE DAY Um por todos e todos por um. One for all and all for one.

6) A country or independent area where taxes are levied at a low rate. (3-5) 7) When a person holding office in an institution, organisation or company dishonestly and illegally appropriates, uses or traffics the funds and goods they have been entrusted with for personal enrichment or other activities. (12) 8) A synonym for a bribe. (9)

EMERGENCY NUMBERS Ambulance - 192

Federal Police - 194

Fire department - 193

Civil Police - 197

Answers: 1) Fraud 2) Bribery 3) Conflict of interest 4) Cartels 5) Agents 6) Tax haven 7) Embezzlement 8) Baksheesh

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