Around the world, corruption undermines economic reform, stifles entrepreneurial spirit and real competition, and disrupts emerging markets. With this in mind, CIPE, in cooperation with the Paris-based Development Centre of the Organization for Economic Cooperation and Development (OECD), co-hosted a major event recently on combating corruption.
The conference, "Fighting Corruption in Developing Countries and Emerging Economies: The Role of the Private Sector," was held in Washington, D.C. on February 22 and 23. This first-of-its-kind event brought together over 250 private sector and government leaders representing some 50 countries. More than a dozen CIPE partner organizations took part in the conference as a result of funding provided by the National Endowment for Democracy.
Dubbed the "Washington Conference on Corruption," the gathering took place one week after the OECD Convention on Combating Bribery went into effect. The conference focused on the experiences of the private sector and successful strategies that business communities have used to reduce corruption. The event provided an excellent opportunity for business leaders and policymakers from around the globe to meet many of the world's top anti-corruption practitioners and to hear firsthand some very compelling stories about eliminating corruption.
The conference attracted dozens of high-level speakers, including William Daley, U.S. Secretary of Commerce, Stuart Eizenstat, U.S. Under Secretary of State, John Brademas, Chairman of the National Endowment for Democracy, Donald Johnston, Secretary General of the OECD, and Harriet Babbitt, Deputy Administrator at the U.S. Agency for International Development (USAID).
Ambassador John Bohn, CIPE's Chairman, headed a panel entitled "Public / Private Partnerships and the Role of Private Sector Associations." Dr. John Sullivan, CIPE's Executive Director, helped to lead a roundtable discussion on "Generating Support for Private Sector Initiatives Through Non-Business Groups."
Two key themes surfaced over and over during the conference. First, fighting corruption is a pro-business agenda. It is in the private sector's interests to operate in an environment of workable competition where the rule of law prevails. Second, the fight against corruption requires close cooperation among the business community, governments, and civil society.
The conference explored such questions as: How can the private sector call for changes in government policies to reduce the burden of corruption on businesses? How can private sector associations establish "watchdog" groups to monitor compliance with local laws? How can changes in procurement codes preclude government officials from demanding payments?
Multinationals attending the meeting were encouraged to go beyond the letter of the law to strengthen compliance with international treaties and to adopt ethics training programs. Local firms were encouraged to initiate anti-corruption actions through independent business associations and to forge partnerships with local governments and civil society.
Dr. John Brademas, Chairman of the National Endowment for Democracy and a speaker at the opening session of the conference, was quoted in The Financial Times as saying that "no country has gone unscathed" by corruption scandals. He noted that the fight against corruption is important for democracy, emerging economies, and the companies that help to sustain these economies.
Dr. Jean Bonvin, President of the OECD Development Center, suggested that the next steps for the private sector include:
Other sponsors of the conference included the U.S. Agency for Inter-national Development, Pricewaterhouse Coopers LLP, and the John D. and Catherine T. MacArthur Foundation.
Frank Vogl, Vice Chairman of Transparency International and a Board Member of the Ethics Resource Center, may have summed up the results of the conference best. He lauded conferees for creating a "forum for getting commitments from many organizations about what could be the next steps in the worldwide fight against corruption." And unlike many anti-corruption gatherings, he concluded, "This conference has been different. It has really set a certain benchmark for the future."