Page 1

12:00 - 13:30

20:30 - 00:30

PLENARY III: DIRTY MONEY: A STOLEN FUTURE. HOW TO RESTORE PEOPLE’S TRUST?

GALA DINNER: TRADITIONAL BRAZILIAN FOOD AND MUSIC

THE IACC TODAY FRI09NOV2012 ISSUE03

THE 15TH INTERNATIONAL ANTI-CORRUPTION CONFERENCE NEWSPAPER

© Virginie Nguyen Hoang

© Alexandre Alves/Divulgação

TIME FOR ACTION “We are creating legacies for future generations that could turn out to be unmanageable. We need literally a paradigm shift.” Broadcast to the plenary audience by video, UN Environment Programme Executive Director Achim Steiner’s opening message laid out a stark challenge at the plenary debate on Rio+20: the world we are developing is unsustainable, and change is needed urgently. Rio+20 marked “a new way of dealing with the challenges of sustainable development”, said Izabella Teixeira, Brazilian Minister for the Environment. By putting

WWW.15IACC.ORG

© Virginie Nguyen Hoang

© Virginie Nguyen Hoang

equality and justice high on the agenda, she argued, it places social well-being alongside economic concerns.

some of the efforts being made to keep the country’s international sports events clean of corruption.

Kumi Naidoo of Greenpeace International, however, questioned Rio+20’s ability to create real change. Time to act is running out, he warned, and the outcomes have “no specificity, no real urgency.” The issues go further than a UN gathering he argued, noting that “the failure lies with a global governance system that is not working for the majority of people on this planet.”

These initiatives are vital for public faith in games, said Sports Professor Simon Chadwick. From match fixing to doping and organised crime, allegations of corruption in sport are well-documented, and they threaten to destroy public enjoyment of the games. “Sport is the one activity where we don’t know what will happen,” he said “that’s the beauty of sport, that’s why we love it, and that’s what is being corrupted.”

Progress is being seen in the rapid developments in online technology. “Technology is transforming transparency”, said Manish Bapna of the World Resources Institute, “it’s connecting us with the people on the ground in radically different ways.”

With costs of sporting events regularly running into the multi-millions, and the global betting market booming, the risk of corruption is high. “The bad people are always following the big money”, said Stanislas Frossard, from the Council of Europe. Tackling these issues effectively requires cooperation across countries and sectors. “Governments, sports bodies, agencies and law enforcement – we have to bring them together, and we have to make them work together,” said UEFA/FIFA referee observer Drago Kos. “If one is missing, it will not work.”

Technology’s ability to promote transparency came up again in the afternoon’s special plenary on corruption in sport. Online monitoring platforms are helping citizens keep track of World Cup spending, said Brazil’s National Secretary for Football and Supporters’ Rights Luis Antonio Paulino, who described


Q&A What needs to be done to restore faith in the financial system? "I think financial institutions need to open up and be transparent to the people whose money they hold. The financial institutions do not own the money, they are just keeping it for people, so they need to be accountable. Financial institutions also need to look at their international banking procedures so they know money received from heads of state and government officials is clean."

TODAY

WHISTLING AROUND THE WORLD

Growing an international movement to connect whistleblowers with investigative journalists Whistleblowers and investigative journalists are two of the most powerful weapons against corruption. By bringing the two together through an international network their impact could be even greater still. What could an international network look like? What should its goals be? What can it accomplish? These are just some of the questions that this session aims to tackle. Join representatives from investigative journalist, anti-corruption and whistleblower groups from countries around the world to help shape a partnership that promises to make a real difference.

MOBILISING METROPOLIS

TODAY

New approaches for fighting corruption in the context of rapid urbanisation

17:30-19:30

By 2030, more than 60 per cent of the world’s population will be living in cities. Ninety per cent of urban population growth is set to occur in developing countries. This rapid expansion of urban centres is bringing with it new challenges for curbing corruption and ensuring service delivery - but it’s also a huge opportunity for innovation and change. With open city movements and participatory projects, a new generation of urban activists is harnessing this energy and creativity to counter power asymmetries. Bringing them together with anti-corruption specialists, this session will explore possibilities for join action.

Wurie Mamadu Tamba Barrie, Sierra Leone Global Youth Anti-Corruption "In Germany there has been a lot of debate about bonuses and levels of pay in the financial services sector. What I believe is really important is to align incentives in a way that is not just short-term, but to tag the bonuses and the level of pay to the medium- and longterm benefit of the company. I think this is something every person on the street will be able to relate to."

09:00-11:00

“A.Mills from Int. Press Institute: "More journalists are killed covering crime and corruption than covering traditional conflicts.” #15iacc - @andrea_arzaba - Andrea Arzaba

Stefanie Teggemann, Germany GIZ "We need transparency in the financial system in order to restore faith. Financial institutions are not transparent or democratic. They need to be accessible and provide information in a language citizens can understand, so the public can bring social control to the financial system. It’s in the public interest as it impacts on all of our lives, in particularly the poor." Nicole Verillo, Brazil AMARRIBO

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

© Guilherme Kardel/Divulgação


TODAY'S PLENARY: IN BRIEF

12:00 - 13:30

RAYMOND BAKER

PLENARY III: DIRTY MONEY: A STOLEN FUTURE. HOW TO RESTORE PEOPLE’S TRUST?

Director of Global Financial Integrity

US$8.44 trillion lost by developing countries to illicit outflows from 2000 to 2009.1

DIRTY MONEY:

1/5 of GDP - the size of the shadow economy

A STOLEN FUTURE. HOW TO RESTORE PEOPLE’S TRUST?

in the EU.2

98 of the FTSE 100 companies use tax havens. 60,000+ multinational companies operate 3

Secrecy in the world of money benefits the rich at the expense of the poor. From returning stolen assets to their countries to corporations committing to zero corruption, steps are being taken to bring more transparency and accountability to our financial system. There is still far to go though, and calls to weaken current regulatory and enforcement mechanisms threaten to turn back progress that has already been made. What are the priorities? What role can non-financial actors play? What is needed to restore public trust in a system that affects us all?

around the world.4

US$32 trillion of hidden financial

assets held offshore by high net worth individuals.5

21 million jobs lost in G20 countries since the 2008 financial crisis.6

Global Financial Integrity. 2European Commission. ActionAid UK. 4Publish What You Pay Norway. 5Tax Justice Network. 6International Labour Organization. 1 3

CORRUPTION: IT´S TIME TO WAKE UP If the world continues looking away, corruption will continue hurting millions of people. It’s time to wake up and act: let’s show the world we stand together against corruption. Watch Transparency International’s campaign video, upload your photo and add your voice to the campaign. http://photo.timetowakeup.org

© Jimmy Chalk

How much do countries lose to illicit financial outflows? We study only the developing countries, we do not study how much the richer countries lose, but for the developing countries our estimate is that about a trillion dollars a year flows out of the poor countries into the richer countries. We base that analysis entirely on data that is supplied by those governments to the World Bank and the IMF. And we think that even that trillion-dollar-a-year figure is conservative because there is a lot that is not included in those official statistics. The official statistics do not include smuggling, they do not include the cross border movement of cash, they do not include certain forms of trade mispricing. So we think our data is very conservative, but a trillion dollars a year is a reasonable estimate to ‘hang your hat on’ as the amount of money that moves out of the developing world to the richer world on an annual basis. What do you think citizens can do to encourage better practices in our global financial system?

A NEW GENERATION OF ANTI-CORRUPTION EFFORTS

SOCIAL

Big change doesn’t always make global headlines.

days, 440 people had signed the petition. Because of the buzz, a collector disciplined the official and reforms were put in place. “It took less than 500 people to make enormous change,” said Hilder, who also co-founded opendemocracy.net & avaaz.org. “We are shaping culture and turning moments into movements.”

© Virginie Nguyen Hoango

Just ask Paul Hilder, the Vice President of Global Campaigns at online petition site Change.org. He sees ordinary citizens fight for extraordinary change every day – largely under the mainstream radar. At the opening plenary of the 15 IACC, Hilder shared one such story, of a young man from Bihar, India, whose tale unfolded when he went to get a driver’s license last year. When the young man, a student, entered the public office, officials demanded a bribe. The man refused and was beaten. Unbeknownst to officials, the young man had recorded the incident on his phone. He shared it with a friend who started a campaign on Change.org. Within

Insist on transparency. Insist on transparency in contracting. Insist on transparency in financial accounts and relationships. Insist on transparency in corporate accounting. The reality is that corporations are not transparent. Corporations can report their results on a global basis and you have no ability to determine how much sales, profits and taxes accrue to any particular country. You have corporations reporting losses, or showing losses in lots of countries around the world, while showing huge profits in tax haven entities. This makes no sense. We need greater transparency in corporate reporting, in beneficial ownership – who owns the accounts in the financial institutions – and with these measures we can begin to make the financial system much more transparent. In your opinion, which countries are leading the fight against illicit financial flows?

Excerpt from a blog post by 15th IACC Young Journalist Jessica Weiss. To read the complete post please visit: www.15iacc.org/social-media

"we could have achieved the MDGs 12 times over, with the cost of corruption in 1 year globally!" #15iacc - @habibshariqa - Shariqa Habib

Norway is certainly in the forefront of this effort. In addition to Norway, there are a number of other countries that we work with in the task force on financial integrity and economic development. Denmark and the Netherlands have stepped up. Germany has instituted its international tax compact, stemming from work that we´ve done. There are various countries that are trying to move this agenda forward. Even the United States, which is not a member of our task force, is attempting to address questions of who owns accounts and working to get the extractive industries to do a better job of accounting for what they are paying to governments. There is progress on all fronts, but it is slow and grinding to bring these to fruition. The above text is an edited excerpt from a video interview – the video will be available at www.youtube.com/15iacc


EVENING EVENT

DID YOU KNOW? FUN FACTS ABOUT BRAZIL

The caipirinha is Brazil’s national drink.

20:30 - 00:30 Gala dinner Anyone who has been to an IACC before will tell you that the gala dinner is not to be missed and Brasília won’t disappoint. A feast of traditional Brazilian food together with live music from some of the country’s most renowned musicians will make this an evening to remember. The winners of the 15th IACC Social Entrepreneurs Initiative will also be announced, where some of the most promising anti-corruption projects will be awarded mini-grants. See you there!

The Amazon river is the 2nd longest in the world, but the largest in terms of water volume.

Brazil has the biggest rainforest in the world – the Amazon.

The largest Japanese community outside of Japan is located in São Paulo, Brazil in the “Liberdade” (Liberty) district.

DON'T MISS!

One of the best soccer players in history was born in Brazil – Pelé.

HOW DO YOU SAY...? Hello - Oi

THE

Goodbye - Tchau

CORRUPTION CROSSWORD

Yes - Sim 6

No - Não Good morning - Bom dia

4

1

Good afternoon - Boa tarde Good evening - Boa noite 5

8

Good night - Boa noite

7

Thank you - Obrigada (women say), Obrigado (men say)

3

Many thanks - Muito obrigada Please - Por favor

2

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) An unequal system of exchanging resources and favours based on an exploitative relationship between a wealthier and/ or more powerful ‘patron’ and a less wealthy and weaker ‘client’. (11)

4) Act of utilising, either directly or indirectly, one’s access to a position of power or knowledge to demand unmerited cooperation or compensation as a result of coercive threats. (9)

2) The sounding of an alarm by an employee, director, or external person, in an attempt to reveal neglect or abuses within the activities of an organisation, government body or company (or one of its business partners) that threaten public interest, its integrity and reputation. (14) 3) Voluntary agreement among different parties. (5)

BRAZILIAN SAYING OF THE DAY A união faz a força. There is strength in numbers.

5) International and regional agreements signed or formally adopted through ratification by multiple states that establish rules and standards on issues which are typically cross-border in nature and require a common approach. (11) 6) The legal process of a country, government and/or its citizens to recover state resources stolen through corruption by current and past regimes, their families and political allies, or foreign actors. (5-8) 7) The city that hosted the 14th IACC. (7) 8) Behaviours and actions consistent with a set of moral or ethical principles and standards, embraced by individuals as well as institutions, that create a barrier to corruption. (9)

EMERGENCY NUMBERS Ambulance - 192

Federal Police - 194

Fire department - 193

Civil Police - 197

Answers: 1) Clientelism 2) Whistleblowing 3) Pacts 4) Extortion 5) Conventions 6) Asset Recovery 7) Bangkok 8) Integrity

© 2012 IACC. All rights reserved.

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