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Nations Combating Corruption Together

Notes spoken to by the Hon. David Kilgour, Member of Parliament and Secretary of State (Asia-Pacific) to the Third Global Forum on Combating Corruption and Safeguarding Integrity at the COEX Conference Centre

Seoul, Republic of Korea

May 30, 2003

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In this building six months ago, former Korean President Kim Dae-Jung told ministers attending the ‘Community of Democracies’ conference that for him the highlight of the 20th century was the spread of multi-party democracy to about 144 nations. Yet, as the Nobel Prize-winning public intellectual Friedrich Hayek noted, “Democratic control may prevent power from becoming arbitrary, but does not do so by mere existence.” James Madison pointed out much earlier that the great difficulty lies in first enabling government to control the governed and next in obliging it to control itself – which brings us back to Seoul today.

Corruption, in all its forms and guises, corrodes the core values of open societies by breeding cynicism among citizens and chipping away at the rule of law. No country, including Canada, is immune. Corruption scares off domestic and foreign investment and creates donor fatigue. In parts of the world, it increases trafficking in drugs, people, and small arms. Its companions are often violence, coercion, and political and social unrest. Perhaps worst of all, corruption lays foundations for those communities that value privilege and power over needs such as food and education - ones that minimize public integrity, justice for all, and accountability.

Globalization’s impetus

Globalization, to its credit, has brought about a new impetus for fighting the “C” word. As co-trustees of a shrinking planet, the issues we should care most about – improving living standards, human rights, environmental protection and equality of opportunity - are all harmed when corruption is not addressed effectively. We know it is the poor and disadvantaged who are disproportionately harmed by corruption. Inequitable growth foments instability, social unrest and terrorism.

There is fear among some governments that fighting corruption will hurt their business competitiveness. On the contrary, as mentioned by several speakers yesterday, the result is a better economic performance at home and abroad. Globalization has already led to a convergence of economic policy and institutions among countries. Why can’t transparency and accountability now be pursued as vigorously as uniform accounting standards and contract laws? Or be considered as essential to well-functioning economies as responsible fiscal policy? Why can economies grounded on public confidence not enjoy a comparative advantage similar to reliable banking systems?

“Clean hands”

The fight against corruption must include trying to come to the table with 'clean hands'. Like your own national governments, Canada's knows that to advance the anti-corruption agenda abroad we must all begin at home. Responsibility for it must not be passed to a limited and perhaps ignored few specialists. As demonstrated by the broad composition of many delegations attending this forum, including Canada’s, the fight must be a systemic one that begins with iron political will and spans all branches of government, the business community and – very importantly - civil society.

As an example, Canada has introduced an innovative online procurement system and inserted anti-corruption awareness clauses for businesses applying for export development financing. We are breaking ground in ensuring the integrity of federal public service employees through a government-wide policy on the disclosure of information concerning wrongdoing in the workplace and the establishment of a Public Service Integrity Office (PSIO). As an independent third-party entity, the Office reviews, and investigates if warranted, disclosures from employees who believe that issues of wrongdoing in the workplace cannot be raised within their own department, or who disclosed an issue in good faith through departmental mechanisms but believe that it was not appropriately addressed. We are funding NGOs like Transparency International Canada, whose Corruption Perception Index allows us to measure progress towards open and accountable government. And we have had in place since 1999 the Corruption of Foreign Public Officials Act, which makes it a crime in Canada – not just a civil offence - to bribe foreign public officials.

Realizing that the fight must start at the highest levels, we have recently introduced political finance reform that bans corporate donations to political parties and limits them to $1000 for individual candidates. No individual will be able to contribute more than $10,000 per year and all political participants will be obliged to disclose the sources and amounts of their contributions as well as expenses incurred. The introduction of a separate, independent ethics officer for each House of Parliament and other efforts are all part of a larger ‘Eight-Point Plan of Action on Ethics in Government’ announced by our Prime Minister and designed to change in major ways how elections are run and to eliminate the perception that money talks in Canada’s electoral system.

New international structures

Similar features for good governance domestically must be the foundation of new international structures. Pushing the fight against corruption to the forefront of the international agenda means sharing best practices, coordinating approaches, changing attitudes, raising standards, and supporting those around the world who are fighting the 'caretakers of the status quo'. Canada has seen a number of positive experiences.

Through the comity that exists between nations and their police forces and through Mutual Legal Assistance Treaties (MLATs), international cooperation is growing in effective law enforcement.

In our experience, the gains from MLATs are enhanced significantly when accompanied by Equitable Sharing Agreements, which allow participating governments to divide the forfeited assets resulting from joint investigations.

Canada's Auditor General, who promotes accountable government and an effective public service through independent audits and studies and reporting to Parliament, was instrumental in starting the International Organization of Supreme Audit Institutions (INTOSAI) initiative, which trains auditors from developing countries in uncovering fraud and corruption.

In the area of customs, automation, simplification and standardization are reducing opportunities for discretionary treatment.

Canada has participated in anti-corruption efforts in many international fora and ratified numerous conventions. Each of these, however, has traction only through implementation. Without the political will of parliamentarians, they and virtually all other efforts to combat corruption will languish as toothless, voiceless window-dressing, which only reinforce public mistrust.

I congratulate John Williams, Member of Parliament and Chair of the Public Accounts Committee of the House of Commons of Canada, for his initiative in creating GOPAC, the Global Organization of Parliamentarians Against Corruption. GOPAC brings together parliamentarians on a regional basis and global, who are committed to fighting corruption through improving their effectiveness in holding governments to account. With a number of regional chapters already formed - the North East Asia chapter has been formed here in Seoul this week - it is an initiative that will attack one root cause of corruption - governments that are not accountable to their citizens.

It is this level of cooperation that we hope will be embodied in the forthcoming UN Convention against Corruption. Global standards should be well integrated with regional ones; practical and affordable monitoring and follow-up mechanisms tailored to meet the special needs and characteristics of each legal instrument are essential. We also look to a convention that includes international cooperation, criminal issues, and, perhaps most importantly, preventive measures.

Corruption, of course, is but a symptom of an even greater ill. As the author Eric Hoffer says, "It has often been said that power corrupts. But it is perhaps equally important to realize that weakness, too, corrupts. Power corrupts the few, while weakness corrupts the many." Friedrich Hayek noted, “the gradual transformation of a rigidly hierarchic system into one where (people) could at least attempt to shape their own (lives) is closely associated with the growth of commerce.” To create an environment where competition can flourish, the rule of law, transparency and the effective combating of corruption in all forms are essential.

The opposite of weakness is strength, and it is found in the rule of law, good governance, independent media, equitable judicial systems, and healthy, educated and informed citizens. When we work to eradicate poverty, promote education for all and build strong social infrastructures both at home and abroad, we are also combating corruption.

As a community, we have the opportunity to send a unified, unequivocal message that corruption will not be accepted in any form - and that tolerance is no better than the deed itself. We owe nothing less to those who have entrusted us to be here today.