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The Road to the New Orthodoxy

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The Social Construction of Global Corruption

Part of the book series: Political Corruption and Governance ((PCG))

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Abstract

If in the 1970s anti-corruption debates in international organizations were dominated by the problem of corporations as political agents, in the 1990s the role of the state as economic agent came center-stage. The Global South lost its strategic importance with the end of the Cold War, but also much changed with the Latin American debt crisis. Yet, the UN venues dominated by developing countries, such as the UNCTAD, the G77 and the UNCTC continued to argue for regulatory activism in the developing world and that the US-sponsored issue of bribery should be understood within the broader agenda of international regulation of multinationals. When the United States re-introduced the issue of bribery at the OECD in 1989, other major competitors from the Global North seemed largely uninterested in the appeal to ban transnational bribery. This chapter traces the position of OECD member states, as well as the work of the OECD Working Group in controversy management. The chapter further discusses the anti-corruption debates at the UN after 1980, and the different take that developing nations had on the good governance agenda, which emerged in the early 1990s

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Notes

  1. 1.

    The proposal stated that illicit payments constitute a ‘broad but discrete subject’ and this is why it demanded special attention. The US delegation also suggested that legal expertise is of primary importance in this case: ‘We would anticipate that the necessary experts – primary legal experts – would come largely from capitals and would have different sorts of expertise from the officials who attend meetings of the standing committees’ (C(89)49, 2).

  2. 2.

    The US proposal envisioned a binding international treaty that would harmonize international legal provisions in accordance with the US law: ‘The goal of an international agreement would be to ensure that individuals and enterprises in OECD member states are subject to comparable national legal standards governing bribery in conducting international commercial transactions. The central element of such agreement would be a binding obligation by members to enact appropriate civil, administrative and criminal penalties to punish their nationals and corporations who commit bribery in connection with such transactions’ (C(89)49, 2).

  3. 3.

    Attention to this process is given in the following UN section.

  4. 4.

    As noted, the content and definition of the actual problem remained unspecified with the US definition of bribery being continuously challenged from other member states at the UN , the OECD and OAS . The preliminary documents made reference to broadly defined ‘illicit payments’.

  5. 5.

    The reference was to a study published by Seymour in 1980 (Seymour, Bruce Illicit Payments in International Business: National Legislation). It is noteworthy that the studies made by Seymour (consisting mostly of the history of the pre-negotiation process in the UN) were the only broadly cited academic scholarship in the Group’s Report.

  6. 6.

    Prolific examples existed in the field of investment and double taxation, but it was unusual for such instruments to be used for criminalization of some forms of transnational behavior.

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Katzarova, E. (2019). The Road to the New Orthodoxy. In: The Social Construction of Global Corruption . Political Corruption and Governance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-98569-5_6

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