The History of Transparency International

Transparency International was formed in 1993. Before then, corruption was not studied in depth by international organizations. Corruption and bribery in the developing world were often a necessary part of doing business. However, by 1995, TI established its head office in Berlin, Germany, and subsequently opened 26 chapters worldwide. They started the first global Corruption Perceptions Index, which ranked countries on the level of corruption domestically. In the first decade of the 2000s, TI had advocated for international organizations to create their own anti-corruption bodies. An example of this was the United Nations Convention Against  Corruption, which required UN members to enforce anti-corruption laws and encourage global cooperation on corruption.

In the 2010s, Transparency International started to expand its focus. For example, they began to focus on the connection between corruption and climate change and how funds intended to reverse the effects of climate change could be mismanaged. As the 2010s progressed, TI became more focused on combating the use of shell companies and increasingly elaborate methods that heads of state and business people employ to hide away ill-gotten gains. In 2019 Transparency started to focus on the link between corruption and democracy. In particular, they have looked at the connection between democracy in a given country and the level of corruption.

A follow-up on Brazil

Recently Lula da Silva won the run-off to decide the winner of the Brazilian election. While this comes as a great relief to left-wing political movements in Brazil and around the world, Brazil still faces questions about corruption. In a statement released by Transparency International, it is alleged that despite the harsh anti-corruption rhetoric put out by the previous government, Bolsonaro and his administration engaged in corrupt practices. It is alleged that money was funneled to allies of Bolsonaro without government oversight which was spent on multiple pet projects. The Bolsonaro administration has also gutted previous anti-corruption legislation to cover their crimes.   One of the goals of the new government will hopefully be to reinstate and build on anti-corruption legislation, although given Lula’s previous history of alleged corruption, this remains to be seen. 

Tom Barrack: Just a Friend of Trump or a Friend with Benefits.

Recently, the trial of one of former President Trump’s closest friends started in Brooklyn. Lebanese-American Tom Barrack, a real estate mogul like Trump, has been charged with acting as an unregistered foreign agent. Barrack was the head of Trump’s inaugural committee and is close to other Trump allies, including Paul Manafort, a well-known lobbyist. According to The Guardian, Barrack speaks fluent Arabic and views himself as someone who can operate and deal with Middle Eastern leaders and power brokers. He was the head of Miramax films from 2013 until 2016, when it was sold to Qatar-based Bein Group; he also runs Los Angeles-based Colony Capital, a private equity real estate firm.

This is not the first time Barrack has been linked to Middle Eastern countries. When he was younger, he worked in the oil industry in Saudi Arabia and made connections with the royal family. Prosecutors allege that Barrack tried to influence former President Trump to pursue a foreign policy favorable to the United Arab Emirates. In return, the UAE would allow Barrack to invest in the lucrative real estate market in Dubai and Abu Dhabi. According to Bloomberg, there was also hope from the UAE government that Trump would make Barrack Secretary of State so that UAE could have a direct line to the government to influence foreign policy further. Barrack’s fate hangs in the balance, as the trial is not over, but if he is found guilty, his usefulness to Trump will end.

EA: Effective Altruism or Effective Greed.

In the 2000s, a concept called Effective Altruism was created by Scottish philosopher William MacAskill. MacAskill’s idea was to encourage bright young college students to get into the financial world, make money, and then give it to charity. According to an article in The Washington Post, an ever-growing network of charities and think tanks have developed over the last two decades to expand the EA movement. EA charities have focused on issues such as Pandemic Presentation and Nuclear non-proliferation. According to an article in The New York Times, EA went from being an obscure theory to a booming industry.

EA came under the spotlight recently due to Sam Bankman-Fried, the now-former CEO of FTX, the Cryptocurrency exchange. Bankman-Fried set up a foundation called the FTX Future Fund that was devoted to Effective Altruism causes. The Future Fund had given away $140 million to other foundations furthering the goals of the EA movement. However, the future of donations has been called into question because Bankman-Fried lost his fortune overnight due to FTX’s collapse. All of this raises questions about Effective Altruism’s future and whether the movement is genuinely trying to improve the world or just lip service spouted by crypto bros.

The Ugly Game: How the Qatar World Cup has Tarnished Football’s Reputation.

This Sunday, the FIFA World Cup in Qatar kicks off. For 11 years, there have been many ongoing controversies over the awarding of the tournament to Qatar. The first significant controversy was over the bidding process due to allegations of corruption. The second major controversy is over the treatment of migrant workers building stadiums and other infrastructure in Qatar. Thirdly, there are well-documented human rights abuses toward women and the LGBT community in Qatar. Finally, there are concerns over the temperature in Qatar during matches, despite the tournament being held in the winter and Qatar not living up to the environmental promises listed in their bid.

Any discussion of the World Cup has to begin with how Qatar won the bidding process. FIFA organized the bidding so the 2018 and 2022 World Cups would be awarded simultaneously. Russia won the right to host in 2018 and Qatar in 2022. A recent article in The Guardian notes that while no official chain of corruption has been proven and the Qatari bid team denies all claims of wrongdoing, the stench of malfeasance is pungent. What is known is that 16 of the 22 FIFA Executive Committee members, the men who run football, have been involved in some form of corruption. The most serious allegations are that representatives of the Qatari bid funneled money to FIFA ExCo members in return for a yes vote for Qatar. These allegations led to the downfall of FIFA President Sepp Blatter and a general sense among those who follow the sport that the bidding process was unfair and that one of the other nations’ bidding, such as the U.S, would have been more suitable.

Not long after Qatar won the right to host the tournament, there were numerous reports documenting the substandard working conditions of those building the infrastructure, including stadiums, transportation, and hotels. Many of these workers came from south Asian countries, such as India, Nepal, and Bangladesh. Chief among the complaints made by the workers was Qatar’s use of the Kafala system. The Kafala system allowed the Qatari government to permit construction companies to sponsor foreign laborers to work and live in the country. According to a recent Council on Foreign Relations report, migrant workers were exploited on many levels. Under the Kafala systems, workers had their passports confiscated and were restricted from moving between jobs. There have also been confirmed reports of workers not receiving their full salary and of unsafe working conditions. According to an article written by the Atlantic Council in 2016, the International Labour Organization, which is part of the UN, sent a delegation to Qatar. The goal was to try and gain more provisions for workers, such as freedom of movement between jobs and better working conditions. These efforts yielded limited success. In a report by The Guardian from last year, more than 6,500 workers died while working in Qatar. However, the actual number is presumed to be much higher.

On top of the already serious issues involving corruption and the mistreatment of migrant workers is Qatar’s general state of human rights. As in many other Middle Eastern countries, women are not allowed fundamental rights. Women in Qatar must obtain permission from a male relative, such as a father or husband, to study abroad, get married, and even in some cases, be able to work. Until 2020 women who wanted to drive had to obtain their guardian’s permission. According to a report by the organization Human Rights Watch, women in Qatar have little recourse in escaping from a dysfunctional marriage. Women in Qatar have stated that it is nearly impossible to get a divorce from an abusive partner or gain custody of children.

Another significant human rights issue is the treatment and discrimination of the LGBT community in Qatar. Under the Qatari penal code, same-sex relations are punishable by up to seven years of imprisonment. In the same Human Rights Watch report, there are incidents of the Qatari police randomly arresting members of the LGBT community and subjecting them to mistreatment in detention facilities. There are numerous reports of the Qatari police forcing confessions out of detainees and reports of physical abuse. Despite the government in 2020 saying that it will allow fans to display rainbow flags, there is a lingering sense that the Qatari authorities are not welcoming of the LGBT community during the World Cup.

The final issue I will highlight are the general concerns surrounding the tournament itself. FIFA had to move this World Cup to the winter because the Qatari summers are too oppressive in which to play football. However, this knock-on effect has forced the European leagues, such as the English Premier League, to pause during November & December. This caused more matches to be played in a tighter window of time, resulting in more players sustaining injuries in the run-up to the tournament. And there are other issues regarding the availability and cost of lodging in Qatar. The organizers have made several cruise ships available for housing. However, there are already numerous reports about a lack of rooms for budget-minded travelers. Finally, there have been concerns about policing in Qatar, particularly in a country where football isn’t mainstream and where there is unfamiliarity with traditional football culture, i.e., singing and drinking. This will be a world cup, unlike any in recent memory, with issues that will continue to exist long after the final whistle.

The Rise and Fall of FTX.

Recently, FTX, one of the world’s largest Cryptocurrency exchanges, was declared bankrupt. According to Fortune magazine, FTX had cryptocurrency assets valued between $10 Billion and $50 Billion. The company’s CEO, Sam Bankman-Fried, had a net worth of around $16 billion before bankruptcy. According to a New York Times article published recently, a rival in the crypto industry suggested that FTX’s finances were not as strong as previously thought. Consequently, organizations and individuals hastily moved their assets off the platform.

Recently, there was hope that Binance, another exchange, would buy FTX and essentially bail them out. However, at the last moment, the CEO of Binance, Changpeng Zhao, decided to back out of the deal because of regulatory concerns and due diligence issues. As a result, FTX had no option but to file for bankruptcy. This collapse has ramifications far beyond investors losing their assets. FTX, in recent years, has forged lucrative sponsorships with sports leagues such as the NBA, MLB, and F1. As a result of the bankruptcy, these partnerships will have to be dissolved. This is an evolving story, but it is clear that the collapse of FTX will have consequences far beyond the complex and murky world of Cryptocurrency.

The Potential Ramifications of FATF Sidelining Russia.

In recent weeks there have been reports that the Financial Action Task Force (FATF) is discussing the possibility of excluding Russia from the anti-money laundering group due to the ongoing war in Ukraine. According to the International Working Group on Russian sanctions (a collection of independent experts in international relations based at Stanford University), the ramifications of FATF blocking Russia would be considerable. Firstly, it wouldn’t allow Russia to influence the creation of new International anti-money laundering laws, which Russia may try and water down with its influence. Secondly, it would force western banks to institute further checks on any capital flows in or out of Russia. Finally, complete sanctions would most likely stop the current practice of Russian companies being able to conduct financial dealings through one of the few banks in Russia that have not yet been banned.

Given the current circumstances, Ukrainian financial institutions are leading the drive to get Russia sanctioned by FATF. On October 14th, the National Bank of Ukraine released a statement pushing FATF to exclude Russia from future FATF conferences and legislation. The Ukrainian World Congress, a non-profit organization advocating for the rights of Ukrainians worldwide, has added its voice to calls for Russia to be sidelined. While the West should welcome such a move, it is now unclear if and when it will happen. 

The Mississippi Welfare Scandal that Blindsided Brett Favre

In May 2020, reports of a wide-ranging corruption scandal involving the Mississippi Department of Human services emerged. An article in the local paper, Mississippi Today, stated that a report by the state auditor highlighted concerns that up to 94 million dollars in Mississippi DHS funds were allotted to charities that had close links to prominent Mississippians. In one of the most high-profile cases, the Mississippi Community Education Center (MCEC), run by Nancy New, funneled 5 million dollars into building a new volleyball facility at the University of Southern Mississippi. The person pushing for the facility to be built was none other than former Super Bowl winning quarterback Brett Favre, a graduate of USM. Favre’s daughter attended the school at the time and played on the volleyball team. At around the same time, John Davis, the head of the Mississippi DHS, awarded 2 million dollars to the Heart of David Ministry, owned by a friend of Davis, Ted Dibiase, a former WWE wrestler better known as the “Million Dollar Man.” Fast forward to September of last year, and Davis pled guilty to two federal charges, one of conspiracy to commit wire fraud and conspiracy to commit theft concerning programs receiving federal funds. 

It is suggested that former Republican governor Phil Bryant and Ms. New helped Favre obtain federal money that would be directed toward the volleyball facility. One of the main reasons this scandal has caused such an uproar is that for many years the state of Mississippi has turned down federal money to help improve its health and education systems, which are among the worst in the nation. Last week Favre released a statement saying that he had nothing to do with the scandal despite solid rumors to the contrary.

Sergei Surovikin: Is he Corrupt or Not?

Recently, President Vladimir Putin named Sergei Surovikin as the commander of Russian forces in Ukraine. In many articles announcing his appointment, military sources (mainly the Ministry of Defense (MOD) in the United Kingdom) state that he is corrupt, brutal, and ruthless on the battlefield. According to the New York Times, he served in Chechnya in the early 2000s and commanded Russian forces in Syria, where numerous human rights violations occurred. Also, according to a report in The Guardian, Surovikin led a rifle division that broke barriers set up by pro-democracy protesters during the 1991 attempted coup by Soviet hardliners and killed three people.

It is much harder to pin him down on any concrete allegations of corruption other than the possibility of weapons dealing. Brokering arms is undoubtedly an unsavory business, but without in-depth evidence, it seems a stretch to label Surovikin as corrupt. This raises the issue of media outlets and other organizations stating that a person may be involved in corruption, but fail to back up such allegations with credible evidence. It seems clear that Surovikin is likely a war criminal, but is he corrupt? It is much more difficult to tell without hard facts.

Lula Da Silva: A Corrupt Politician or Hero to Brazil’s Working Class?

Luiz Inacio Lula Da Silva, better known as Lula, has been a prominent figure in Brazilian politics and on the international stage. Silva was the head of the metalworkers union in Sao Paulo state and, in the mid-1980s, founded the Partido Dos Trabalhadores (PT), known in English as the workers’ party. After many failed attempts, he was elected as president of Brazil in 2003 and served until 2010. In 2014 four years after he left office, a massive corruption scandal involving the state oil firm Petrobras.  

According to BBC, In July 2017, Lula was found guilty of receiving a beachfront house as a bribe from a construction firm called OAS in return for his aid in winning lucrative government contracts.   After spending four years in prison, his convictions were annulled because the alleged crimes took place in Brasilia when Lula was president and not in Curitiba in the state of Parana. This freed up the possibility for him to run again for president after three years of populist rule under Jair Bolsonaro. The first round of the election was held recently, and while Lula got 48% of the vote, he needed 50% to win outright. (Bolsonaro received 42%) A runoff will be held at the end of the month to determine the winner. It is difficult to know what the truth is here: Is Lula a hero to Brazil’s working class, or is he like so many other politicians who are corrupted by power?