Corruption and Transparency

Corruption and the Proposal for the Establishment of an International Anti-Corruption Court

Corruption destroys the foundations of human prosperity and the very purpose of governance, making it toxic to growth in both developed and developing countries alike. When the political establishment and the justice system have been captured by corrupt elites, a country is unable to rid itself of corruption. An international judicial mechanism, following the model of the International Criminal Court, could bring necessary justice by prosecuting entities that violate established norms on corruption.

Corruption undermines development and prosperity for civilians worldwide. Economic growth, investment, and public trust diminish when institutions succumb to corruption. Such circumstances can culminate in the exacerbation of income inequality and political instability, infecting every aspect of society. Diverting public funds limits government revenue, hindering investment in sustainable sectors such as education, infrastructure, and health. When policies are formulated mainly in the interests of the wealthy, social spending and tax systems are distorted in their favor. Through benefitting higher income brackets, corruption exacerbates economic inequality by enriching the few at the cost of the many. Corruption furthermore deters private sector development by constructing barriers to innovation. Bribes impose financial burdens that disproportionately affect small and medium-sized businesses, essential for sustainable development. The international community additionally limits foreign direct investment to such populations to avoid funneling resources to the pockets of kleptocrats. For instance, increasing corruption levels from Singapore to Mexico’s is equivalent to raising the tax rate by 21-24%. Finally, bribery and corruption tend to lead to other forms of crime, breeding mafias and organized criminal groups. Combined, these dynamics alienate populations from achieving economic prosperity.

Human rights violations can flourish when an elite minority maintains the sole voice in governance. Through distorting society’s economic, political, and social factors, corruption in turn violates human rights. It can delegitimize institutions designed to safeguard the rule of law or ensure an adequate standard of living. Money lost to corruption diminishes government resources to fulfill human rights obligations, deliver services, and improve living standards. While a lack of resources does not equate to inaction with promoting human rights, states must exemplify an effort to sustain such measures. However, when significant amounts of public funds are diverted because of corruption, it becomes difficult to uphold the institutions that are the basis for civil and political rights. Corruption, furthermore, can aggravate gender inequalities. A United Nations Development Programme study found that 76% of women surveyed believe corruption has prevented access to public goods and services. As women tend to utilize public goods more than men, they face greater effects when the efficiency of services (such as implementing bribes to register a child in school) is undermined. In paying bribes, women give up a larger proportion of their income compared to men, reinforcing the cycle of poverty. Additionally, when sextortion becomes a currency of corruption, gender becomes a direct implication of the disproportionate effects of corruption on women.

Corruption hinders the ability of the global community to tackle transnational issues. To combat climate change, it is estimated that 7-15% (US$1-2billion) of the US$13 billion annual climate funds allocated to the water sector are lost to corruption. Concerns regarding the procurement of aid are heightened by the top recipients of climate finance—receiving 41.9% of the US$546 billion of funding–also facing higher instances of corruption. Notably, the least corrupt of these recipients–Senegal and Argentina–only rank 66 out of 180 on the 2019 Corruption Perceptions Index. In Bangladesh, it is estimated 35% of climate project funds have been embezzled. Furthermore, corruption creates a weakened fiscal ability to address the climate crisis. Diverted funds from corruption correlate to poor-quality investments to mitigate the effects of rising sea levels, desertification, and other effects of climate change. Furthermore, government inefficiency results in inadequate responses to crises and natural disasters, which are more prominent with climate change.

Corruption is a vicious cycle, meaning there is no end to the havoc it can wreak on the state and society. Its spread must be actively checked—if not by national governments, then by the international community. To address the devasting effects of corruption, the creation of an International Anticorruption Court (IACC) as a free-standing international court focusing on prosecuting corruption would establish binding international juridical oversight. This court would be designed to target “grand corruption” or the abuse of public office for private gain by a country’s leaders, taking away the impunity that national leaders often exploit. Currently, corruption at the international level results in the loss of trillions of dollars every year; the cost of a new international court pales in comparison to this staggering sum (the ICC, for example, costs about US$167 million annually).

The IACC would be a forum to prosecute kleptocrats and their conspirators, deter future corruption, and repatriate assets for the victims. Following the principle of complementarity, a kleptocrat would only face prosecution if his member state they were unwilling or unable to do so. The court would have jurisdiction to prosecute nationals of member states or persons who commit a crime in a member state; for instance, using the banking system of a member state would qualify under the IACC if said member state was unable or unwilling to prosecute the case. Thus, it would act as a court of last resort. This would encourage states to strengthen their judicial capacity to punish grand corruption, eliminating the exploitation of impunity. As such, the goal of the IACC is to successfully prosecute and remove kleptocrats from office as a deterrent to grand corruption.

Corruption increases the cost of public services. Through creating financial or other barriers, the access to essential services is often impeded. As such, the government’s ability to provide for the people is undermined by personal gain. In the public sector, such instances are most common in public procurement—as seen with the COVID-19 pandemic—and in the maintenance of state-owned enterprises.

Corruption correlates to political instability, undermining global peace worldwide. In regions that confront violence–such as Central America and Afghanistan–corruption in police and security undermines the state’s ability to protect its civilians, thus contributing to mass migration. Furthermore, numerous armed conflicts, such as in Syria, initiate from civilians protesting and revolting against corrupt autocratic regimes. As a result, corruption is the root cause of much political instability and conflict worldwide.