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International Anti-Corruption Policies and the United States National Interest

  • Susan Rose-Ackerman
  • Sinéad Hunt
Chapter
Part of the Political Corruption and Governance book series (PCG)

Abstract

Statutes, treaties, and ‘soft-law’ initiatives seek to constrain bribery in international business transactions. Some claim that these anti-corruption instruments harm the United States national interest. Though hard statistics are unavailable, we argue that critics have overstated the negative impacts and neglected the potential benefits.

Keywords

Foreign Direct Investment Supra Note Transparency International Foreign Corrupt Practice Extractive Industry Transparency Initiative 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. Henry R. Luce Professor of Jurisprudence (Law and Political Science), Yale University; Board Member Transparency International-USA. This article is a shortened and updated version of Susan Rose-Ackerman and Sinéad Hunt, Transparency and Business Advantage: The Impact of International Anti-Corruption Policies on the United States National Interest, 67; New York University Annual Survey Of American Law, 433 (2012); MA in International Relations, Yale University, 2009; Class of 2013 Yale Law School.Google Scholar
  2. 3.
    Andrew Weissmann and Alixandra Smith, U.S. Chamber Inst. for Legal Reform, Restoring Balance: Proposed Amendments to the Foreign Corrupt Practices Act, 6–7 (Oct. 2010), available at http://www.instituteforlegalreform.com/sites/ default/files/restoringbalance_fcpa.pdf.Google Scholar
  3. 4.
    For a response to the Chamber’s proposals, see David Kennedy and Dan Danielsen, BustingBribery: Sustaining the Global Momentum of the Foreign Corrupt Practices Act, Open Society Foundations (Sept. 2011), available at http://www.soros.org/initiatives/washington/articles_publications/publications/busting-bribery-20110916.Google Scholar
  4. 5.
    See, e.g. Harold Kim, House Hearing: An Important Step toward Fixing the FCPA, ChamberPost (June 15, 2011), http://www.chamberpost.com/2011/06/ house-hearing-an-important-step-toward-fixing-the-fcpa/.Google Scholar
  5. 16.
    See, e.g. Michael B. Bixby, The Lion Awakens: The Foreign Corrupt Practices Act— 1977 to 2010, 12 San Diego Int’l L.J., 89, 90–91 (2010);Google Scholar
  6. Mike Koehler, The Foreign Corrupt Practices Act in the Ultimate Year of Its Decade of Resurgence, 43; Ind. L. Rev., 389, 389 (2010);Google Scholar
  7. Amy Deen Westbrook, Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act, 45; Ga. L. Rev., 489, 495–496 (2011).Google Scholar
  8. 22.
    See David Metcalfe, The OECD Agreement to Criminalize Bribery: A Negotiation Analytic Perspective, 5; Int’l Negotiation, 129, 134–135 (2000).Google Scholar
  9. 31.
    Lucinda A. Low, Thomas K. Sprange & Milos Barutciski, Global Anti-Corruption Standard and Enforcement: Implications for Energy Companies, 3; J. World Energy L. & Bus., 166, 171–172 (2010).Google Scholar
  10. 39.
    See, e.g. Henry (Litong) Chen & Xiaosong Zhou, Possible Impacts of the Dodd-Frank Act on U.S. Companies Doing Business in Asia, Bloomberg L. Rep. Asia Pac. L., June 6, 2011, at 18–19, available at http://www.mwechinalaw.com/uploads/doc/chenzhou-doddfrank.pdf.Google Scholar
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    Erin Fuchs, The Largest-Ever Corporate Payouts to the US Over Foreign Bribety Charges, Business Insider (Aug. 14, 2012), available at http://www.businessin-sider.com/the-largest-fcpa-settlements-2012–8?op=1.Google Scholar
  12. 53.
    Martha Buttry & Jeff Perry, King & Spalding, SEC Sued Over Dodd-Frank Extractive Industries Rule (Nov. 2012), available at http://www.kslaw.com/ librarv/newsletters /EnergvNewsletter/ 2012 /November/article 7. html.Google Scholar
  13. 54.
    See Sinéad Hunt, Re fining Black Gold: The Dodd-Frank Act and Corruption in the Oil Industry, 16 UCLA J. Int’l L. & Foreign A ff., 41, 61–66 (2011).Google Scholar
  14. 65.
    George J. Terwilliger III et al., China’s New Anti-Corruption Law Goes Into Effect May 1, 2011, White & Case LLP (Apr. 19, 2011), http://www.whitecase.com/ alerts-04202011 /.Google Scholar
  15. 66.
    For a detailed treatment and analysis of the dynamics of corruption, see Susan Rose-Ackerman, Corruption: A Study in Political Economy, 111–120 (1978).Google Scholar
  16. 68.
    See Eric Friedman et al., Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 Countries, 76; J. Pub. Econ., 459, 481 (2000) (using cross-country data to show that greater corruption correlates with smaller government size and less official economic activity).CrossRefGoogle Scholar
  17. 71.
    See Angus Deaton & Ronald Miller, International Commodity Prices, Macroeconomic Performance, and Politics in Sub-Saharan Africa, 79; Princeton Studies in Int’l Fin., 1 (1995), available at http://www.princeton.edu/-deaton/ downloads/International_Commodity_Prices.pdf.Google Scholar
  18. 76.
    See, e.g. Toke S. Aidt, Corruption and Sustainable Development, in 2 International Handbook on the Economics of Corruption 3, 37, 40 (Susan Rose-Ackerman & Tina Soreide, eds, forthcoming 2011).Google Scholar
  19. 77.
    This paragraph summarizes the arguments in Susan Rose-Ackerman, ‘Grand’ Corruption and the Ethics of Global Business, 26; J. Banking & Fin., 1889, 1904–1907 (2002).Google Scholar
  20. 80.
    The 11th Circuit is currently considering the definition of ‘foreign official’ in the appeals of two individual defendants. Samuel Rubenfeld, Justice Department Attacks ‘Foreign Official’ Challenge in Appellate Brief, Wall St. J. (Aug. 21, 2012), http://blogs.wsj.com/corruption-currents/2012/08/21 /justice-department-attacks-foreign-official-challenge-in-appellate-brief/.Google Scholar

Copyright information

© Susan Rose-Ackerman and Sinéad Hunt 2015

Authors and Affiliations

  • Susan Rose-Ackerman
  • Sinéad Hunt

There are no affiliations available

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