London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

Corruption blights the developing world but the US and Europe are accomplices

Corruption blights the developing world but the US and Europe are accomplices

State capture is growing on every continent but only because the west helps to launder and hide money stolen by kleptocrats
Last week, John Penrose, Boris Johnson’s anti-corruption tsar, resigned in protest at his leader’s apparent breach of the ministerial code during Partygate. In January, Lord Agnew resigned as a Treasury minister, angered at the government’s negligence in allowing fraud to occur in its Covid contracts and loans.

Both were standing up against corruption through bad governance and poor leadership.

Last month, as part of the launch of its excellent publication Understanding Corruption, the University of Sussex’s Centre for the Study of Corruption held an event entitled Breaking Free from State Capture, featuring a keynote address by Mo Ibrahim.

The Sudanese-British telecoms billionaire is a passionate advocate and campaigner for good governance and better leadership through his foundation, charged with making a difference in Africa, where state capture and crony capitalism have enfeebled the continent for decades.

Corruption, defined as the abuse of entrusted power for private gain, is a complex and nuanced subject. Its consequences are deeply significant. It is a barrier to equitable and sustainable development, and it diverts resources from the poorest to the rich and the restlessly ambitious, creating inequity, exclusion and inequality.

It deters foreign investment and distorts public expenditures. It is pervasive, deleterious and often likened to water, as it is seen as unstoppable, difficult to contain and always finds a way around barriers. It permeates our political and legal institutions and trickles down to the bedrock of our society, manifesting in fraud, bribery, extortion, embezzlement, cronyism and nepotism.

The word “corruption” can evoke images of past world leaders such as Mohammed Suharto, Ferdinand Marcos, Mobutu Sese Seko, Slobodan Milosevic, Jean-Claude Duvalier, Alberto Fujimori or Arnoldo Alemán. More recently it can conjure up images of Nicolás Maduro, Isabel dos Santos, Vladimir Putin and Kim Jong-un.

Clearly, corruption does not have a colour, gender or race. It has a credo though: power, greed and a total absence of integrity and accountability.

One could easily also come to the conclusion that corruption only occurs in developing countries. An understanding of the mechanics of illicit financial flows will change that opinion. Corruption facilitates the business of criminality that enriches actors through drug and human trafficking, money-laundering and financing terrorism.

This financial network, enabled by lawyers, accountants, estate agents and others, stretches through the Americas and the Caribbean, eventually terminating in the US, EU, UK and its territories. These financial structures allow kleptocrats to easily hide the proceeds of their corruption.

State capture is a form of grand corruption and refers to systemic political corruption in which private interests significantly influence formation of a state’s policies and laws to their own advantage. These captors, through their personal connections to the political elite, gain a long-term economic stranglehold, not just by changing the rules but by the compounding over time of their interests, power and wealth.

Over the last few decades, state capture has manifested in countries including Bulgaria, Hungary, Brazil, Colombia, Mexico, Angola, South Africa, Turkey and Malaysia. That is evidence that corruption does not just occur on any one continent.

Capture can take place when a small group has unfathomable influence over policy formation. Consider the National Rifle Association in the US where, even in the face of school shootings, they continue to block policy on gun ownership.

Capture can also be a group of politicians in the same party, educated at the same university, stamping their elitist ideology on a country, closing ranks when there are allegations of corruption.

Ibrahim criticised the mismanagement of both natural and human resources, noting that more than 600 million African people were without electricity, which affects their quality of life, business and education. He asked and answered the question that has always been a conundrum: why is Africa so poor while it possesses so many natural resources?

He laid the blame squarely on corruption – aided by bad governance and poor leadership but more so by illicit financial flows entrenched in the US and Europe. He quoted the UN’s estimate that this amounts to more than $89bn (£75bn) a year – roughly 3.7% of Africa’s GDP – as money-laundering in the US and Europe enables the proliferation of corruption, supporting criminals and dictators.

He also outlined how corporate practices need to be addressed through better governance. He singled out big corporations such as Starbucks, Apple and Google, which have all had tax avoidance schemes investigated. He omitted Meta, Microsoft and Amazon.He lamented the dire need for registers of beneficial ownership of companies, previously shrouded in secrecy but now suddenly under scrutiny in tracing and freezing assets of Russians. He omitted laws to promote transparency of party financing and lobbying, as called for by Penrose.

Ibrahim ended with a declaration that corruption needed to be confronted in Westminster and Washington before it could ever be dealt with effectively in Africa. The world needs more people like Mo Ibrahim.
Newsletter

Related Articles

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×