DATE=4/2/98
TYPE=BACKGROUND REPORT
NUMBER=5-39452
TITLE=ANTI-CORRUPTION MEETING
BYLINE=JIM TEEPLE
DATELINE=MIAMI
CONTENT=
VOICED AT:
INTRO: ANTI-CORRUPTION EXPERTS MEETING IN MIAMI, FLORIDA SAY
UNREGULATED OFFSHORE FINANCIAL INSTITUTIONS ARE PLAYING A KEY
ROLE IN THE SPREAD OF ILLEGAL ACTIVITIES AROUND THE WORLD.
V-O-A'S JIM TEEPLE HAS DETAILS FROM THE INTERNATIONAL
ANTI-CORRUPTION FORUM.
TEXT: JACK BLUM IS AN INTERNATIONAL LAWYER WHO HAS INVESTIGATED
FINANCIAL CORRUPTION AROUND THE WORLD FOR THE U-S SENATE. HE SAYS
TRILLIONS OF DOLLARS A YEAR MOVE THROUGH OFF SHORE FINANCIAL
INSTITUTIONS.
// INSERT BLUM ACTUALITY //
THERE IS NOW A NETWORK OF SOME NINETY-ODD JURISDICTIONS
(COUNTRIES AND/OR TERRITORIES) THAT SELL THEIR
SOVEREIGNTY TO PROTECT PEOPLE FROM THE ACTIVITIES OF
THEIR OWN HOME COUNTRY, WHETHER IT IS THE TAX COLLECTOR,
WHETHER IT IS THE LEGAL SYSTEM, WHETHER IT IS AN EFFORT
TO CONTROL FRAUD OR WHATEVER IT HAPPENS TO BE. AND
THESE COUNTRIES PROVIDE BANK SECRECY, ANONYMOUS BANK
ACCOUNTS, CORPORATIONS WHICH CANNOT BE TRACED OR TRACKED
AND SO-CALLED ASSET PROTECTION TRUSTS THAT KEEP THE
MONEY OUT OF THE REACH OF THE LEGAL SYSTEM.
// END ACTUALITY //
JACK BLUM SAYS NO ONE KNOWS HOW MUCH MONEY IS IN THESE OFF-SHORE
FINANCIAL INSTITUTIONS, BECAUSE THEY OPERATE IN A COMPLETELY
UNREGULATED ENVIRONMENT. THEY ARE USED BY ESTABLISHED FINANCIAL
INSTITUTIONS AND BY CRIMINALS AND CORRUPT OFFICIALS, BLURRING THE
LINE BETWEEN WHAT IS A LEGITIMATE FINANCIAL TRANSACTION AND WHAT
IS NOT.
// OPT // MR. BLUM SAYS VENEZUELANS LEARNED SOME HARD LESSONS A
FEW YEARS AGO WHEN MANY VENEZUELAN BANKS MOVED INTO THE OFFSHORE
SECTOR.
// INSERT 2ND BLUM ACTUALITY //
ALL OF ITS BANKS WERE PERMITTED TO SET OPERATIONS
OFF-SHORE AND THE OFF-SHORE OPERATIONS WERE VERY HEAVILY
INVOLVED IN DRUG MONEY LAUNDERING. WHEN THAT HAPPENED
AND THE DRUG PEOPLE WITHDREW THEIR FUNDS, THE ENTIRE
VENEZUELAN BANKING SYSTEM COLLAPSED AND VENEZUELAN
SOCIETY IS STILL PAYING THE PRICE.
// END ACTUALITY // END OPT //
CONFERENCE PARTICIPANTS IN MIAMI SAY OPPORTUNITIES FOR CORRUPTION
HAVE GROWN IN RECENT YEARS WITH THE EXPLOSION OF DE-REGULATION
AND PRIVATIZATION AROUND THE WORLD. ROBERT KLITGAARD IS THE DEAN
OF THE RAND GRADUATE SCHOOL, A PUBLIC POLICY RESEARCH INSTITUTION
BASED IN SANTA MONICA, CALIFORNIA. HE SAYS WHEN CLOSED SOCIETIES
OPEN UP THERE ARE ENORMOUS REWARDS, AS WELL AS ENORMOUS RISKS.
// INSERT KLITGAARD ACTUALITY //
AS WE MOVE TOWARDS DEMOCRACY AND POLITICAL COMPETITION,
WE ACTUALLY SEE AN INCREASE IN CORRUPTION. IN PART
BECAUSE WE ARE ABLE TO REPORT IT MORE BUT ALSO IN PART
BECAUSE THE RULES OF THE GAME, WHEN THEY CHANGE OFFER
NEW OPPORTUNITIES FOR OPPORTUNISM. I THINK THE REAL
DANGER IS THAT WE WILL DISCREDIT BOTH LIBERAL ECONOMIC
REFORMS AND REFORMS IN POLITICAL LIFE BECAUSE OF THE
CORRUPTION THAT ATTENDS THEM.
// END ACTUALITY //
CORRUPTION, SAY THE EXPERTS, IS MOST OFTEN PRACTICED BY ELITES
WHO HAVE THE MEANS AND THE ABILITY TO EVADE LAWS AND REGULATIONS.
BECAUSE OF THAT, FIGHTING CORRUPTION IS DIFFICULT, BUT THE
EXPERTS AT THE MIAMI MEETING OFFERED SOME SUGGESTIONS, SUCH AS
PUNISHING A FEW MAJOR OFFENDERS AND BETTER OVERSIGHT BY
NON-GOVERNMENTAL INSTITUTIONS. THEY ALSO SAY RAISING PUBLIC
AWARENESS CAN HELP EVEN THE MOST CASH-STRAPPED ECONOMIES IN THE
DEVELOPING WORLD FIGHT CORRUPTION. (SIGNED)
NEB/JLT/TMD/KL
02-Apr-98 5:39 PM EST (2239 UTC)
NNNN
Source: Voice of America
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