Three essential initiatives to defend democracy against corruption
The expression “all politics is local,” meaning that a politician’s success hinges on his or her ability to understand and influence the issues of constituents, held true for generations. In today’s world, however, the increasingly globalized nature of corruption subverts local democratic politics and processes.
Autocrats use and abuse state resources to corrode institutions, harass the democratic opposition and curtail domestic accountability systems. Leveraging the global financial system and its network of international enablers, autocrats are able to hide and grow these ill-gotten gains offshore, thus increasing their ability to fund domestic repression and even influence politics and elections in other countries.
Recognition of the dangers of transnational corruption is growing. The inclusion of anti-corruption as one of the three core pillars of the Summit for Democracy is part of a broader global effort to rally the democratic community of nations.
The dimensions and complexity of transnational crime defy quick fix solutions. Game-changing progress demands grand-scale solutions such as the following:
- Stand with Ukraine. Simply put, Russia’s illegal invasion of a free and sovereign Ukraine is existential for the Ukrainian people: their sovereignty, freedoms and way of life are on the line. On an international scale, the stakes are similarly high: a battle for peace and rule of law pitched against the forces of warfare and kleptocracy. The assault that began on Feb. 24 is simply aggression by other means. For years, Putin used disinformation and “strategic corruption” to inflict damage on Ukraine’s democracy and economy. If Ukraine maintains its sovereignty, autocrats might think twice before committing the sort of cross-border repression that is becoming increasingly common, whether it’s hijacking an airline, kidnapping a dissident, or (potentially) invading a free and democratic neighboring country. Thousands of Ukrainians have already made the ultimate sacrifice to defend rule of law in their country. It’s up to the rest of the democratic world to stand with them, resolutely and unified. In the short-term, this means giving Ukrainians the tools they need to end Russia’s illegal assault. And, in the longer-term, it means shutting down the dark money havens, particularly in Europe and North America, that have long helped to finance the Kremlin’s capacity for repression.
- Win the Information Space Race. Despite democracy’s intrinsic value and superior performance in delivering economic and social progress, the messaging on democracy’s dividends has been lost in translation. Kleptocrats draw on deep pockets in their efforts to repress and manipulate opinion. In 2021, Russia increased its propaganda budget to about $2.8 billion — a $460 million increase from previous years. In comparison, the U.S. Agency for Global Media —including Voice of America, Radio Free Europe/Radio Liberty, and other outlets — has an annual budget of about $840 million. Independent media is particularly crucial for anti-corruption activism and the autocrats know it. Journalists who report on corruption, such as Rappler CEO and Nobel Laureate Maria Ressa, are harassed in smear campaigns; women reporters and reformers bear a disproportionate share of the abuse. Recovering the information space so that it reflects integrity and freedom, rather than disinformation and repression, will require a massive and concerted clean-up effort in support of independent media, media literacy and harmonized platform transparency and regulation among other initiatives. The best analogy is a modern-day “Marshall Plan for the Information Space” that would draw on the resources and commitment of democratic actors around the globe.
- Disrupt Debt, Democratically. The sovereign debt system is in desperate need of a democratic reset. The current state of opaque and unsustainable debt represents a major impediment to global development and rule of law. Loans are often contracted without public knowledge. Parliaments are similarly sidelined by governments and lenders eager to fast-track deals that may be in their interests, but not necessarily in the public’s interest. Opacity fuels corruption and expands authoritarian influence. The government of Mozambique borrowed and likely misused, without disclosing, loans from private banks totaling $1.3 billion. The world’s largest single creditor, China has been able to expand its influence through lending that features confidentiality clauses and the collateralization of strategic reserves. The development impacts are no less impactful. Unsustainable debt reduces funding for essential public services: In 2021, 25 of the world’s poorest countries spent more on debt service payments than on health, education and social protection combined. The key to preventing future cycles of debt distress is building transparency and accountability into the global sovereign debt regime. Lenders must be transparent: Government, multilateral and private creditors should consistently disclose loans and their terms within 30 days of contract signature. Likewise, borrower governments should hold accountable debt contracting processes, inclusive of public scrutiny and parliamentary approval.
Time is running out for democratic leaders to act decisively against transnational corruption. In order to defend democracy, political and civic leaders will need to deploy anti-corruption strategies that are at least as concerted, innovative, adaptive, and transnational as the corrupt networks themselves. Thus far, corrupt actors have been able to exploit fissures within and between democratic countries. Moving forward, to fight kleptocracy and autocracy effectively, the democratic world must demonstrate unity of purpose and action.
Kristen Sample is director, democratic governance, National Democratic Institute (NDI).
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