Private Sector Plays Key Role in Reducing Corruption’s Impact on Development
Washington D.C. - As the Biden Administration focuses on combating corruption at home and abroad, a new strategy aims to leverage the private sector’s strengths to provide oversight of government agencies and reduce the detrimental impact of corruption on development.
The U.S. Strategy on Countering Corruption
Released in December 2021, the U.S. Strategy on Countering Corruption seeks to revitalize anti-corruption efforts by evaluating existing programs, ensuring coordination across agencies, and demonstrating transparent and accountable governance. The strategy focuses on official government abuse of power, or public corruption, which is endemic in several Latin American and Caribbean countries.
Types of Public Corruption
According to the strategy, there are five illustrative types of public corruption:
- Grand corruption
- Administrative corruption
- Kleptocracy
- State capture
- Strategic corruption
These forms of corruption can have devastating effects on development, including:
- Undermining trust in institutions
- Discouraging investment
- Perpetuating poverty
The Private Sector’s Role
To address these challenges, the private sector is playing a crucial role in providing oversight and reducing corruption’s impact. For example:
- Companies are working with governments to develop transparent procurement practices.
- Non-governmental organizations (NGOs) are advocating for stronger anti-corruption laws and policies.
Promoting Transparency and Accountability in Latin America and the Caribbean
In Latin America and the Caribbean, where official corruption is widespread, the private sector can play a key role in promoting transparency and accountability. By partnering with local businesses and civil society organizations, international companies can help strengthen institutions and promote good governance practices.
Challenges Ahead
However, analysts warn that some U.S. efforts to combat corruption may be duplicative or produce contradictory outcomes. To ensure effective anti-corruption initiatives, Congress is considering new approaches and oversight mechanisms.
“We need to carefully evaluate existing programs and consider the local conditions,” said June S. Beittel, Analyst in Latin American Affairs at the Congressional Research Service. “We also need to assess whether there is enduring and sufficient political will to support these efforts.”
Questions for Review
In reviewing anti-corruption strategies, Congress may ask questions such as:
- Does a program fit the local conditions?
- Is there a gap between the proposed approach and local political and economic realities?
- Have designers proposed metrics for assessing progress and measuring success?
Conclusion
By working together with governments, civil society organizations, and the private sector, the U.S. can play a key role in reducing corruption’s impact on development and promoting transparent and accountable governance.