Posts tagged with: corruption

When thinking of southern Italy, Americans probably imagine the Amalfi Coast, Mount Vesuvius, and lemon groves, but to the average Italian the picture is of rotting garbage in the streets of Naples and the Mafia. These realities have been strikingly portrayed in Roberto Saviano’s book Gomorra (ET), which is also the basis of a newly-released motion picture in Italy.

Saviano is a young journalist who clearly describes the dark side of his country. It is probably the most courageous “j’accuse” ever cried out against the Camorra, the Mafia of Naples. In order to write this book, the author disguised himself, took on another identity and infiltrated “The System”, as the Camorra is known in Naples.

Saviano’s reporting has won several awards. His book has been translated in 42 countries and has been a best-seller in Germany, Holland, Spain, France, Sweden and Finland. The New York Times classified it as one of the best books of 2007 and The Economist added it to its list of 100 best books of 2008. In Italy, it is considered the best book of the year and has sold over a million copies.

In chilling passages, the author explains the power of the organization and names the families, alliances, trafficking, corruption and misery surrounding the Camorra’s world. It is a shocking picture, even for those Italians who are well-aware of the criminal organizations infesting Italy. These corrupt networks seem impossible to defeat, a parallel country within the country.

It is incredible to recount the Camorra murders in Naples, nearly 4,000 in the last 30 years, numbers that can be compared to a war. Even more astonishing are the figures concerning the economy of this international organization that, together with the other criminal organizations, accounts 7 per cent of Italy’s gross domestic product, more than $127 billion in a year.

The historic, political and social reasons that have lead to this phenomenon can be summarized in one word: “corruption”. Never in any other European country has there been such a wide scale and longstanding connection between crime and political corruption.

But thanks to this book and civic movements that are starting to rebel against this kind of society, Italians are developing a deeper awareness of the problem. The film version of Gomorra has gotten off to a great start at the box office, with more than €2 million in ticket sales in less than three days.

The movie brilliantly summarizes the book and is courageously filmed in Scampia, the dangerous Neapolitan neighborhood where the story takes place. The movie is also showing at the Cannes Film Festival where the international press applauded Saviano’s courage and the courage of Italians like Saviano (who has been living with constant police protection since October 2006) who courageously face truth and stand up to crime and corruption.

Blog author: mvandermaas
Tuesday, March 11, 2008
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A victimless crime?

Via Hugh Hewitt, here are Carol Platt Liebau’s thoughts on the prostitution scandal now engulfing New York Governor Eliot Spitzer:

The whole idea, pioneered by you-know-who and enabled by you-know-who-else, is that illicit sexual behavior and the scandals resulting therefrom can be brazened out by the insistence that they are irrelevant to the discharge of public duties. As I argue in my book, it’s all part of a new ethical calculus concluding that — uniquely in the constellation of virtues — sexual morality is a subjective and purely personal matter that’s of relevance only to “religious” people (or else prurient and “judgmental” ones), even when it impacts the public.

All of us are human, all of us are sinners, no one is perfect. Certainly, there but for the grace of God go any of us. But that doesn’t mean that there should be no standards. In particular, it’s unfortunate if and when public officials conclude that sexual behavior that’s deeply disgraceful (not to mention illegal) doesn’t merit resignation. It degrades our culture, makes others complicit in condoning conduct that shouldn’t be condoned, and normalizes behavior that’s wrong.

As has become the norm, there are also plenty of voices (here’s one) decrying the fact that Spitzer may be forced to resign over a sexual indiscretion, that the worst he’s guilty of his hypocrisy, and that prostitution is essentially a “victimless crime.” It remains to be seen whether or not Spitzer will step down as a result of the scandal, but in the meantime Jordan Ballor offers some food for thought in this post, which looks at the differing standards that seem to apply to business and church leaders on the one hand and governmental officials on the other when sexual indiscretions are revealed. And be sure to take a look at the David Hess essay that Jordan references in his post as well.

So, dear readers, what do you think? Should Spitzer step down, or is his indiscretion not that serious?

Last week, Istituto Acton’s close Italian ally in defense of liberty, Istituto Bruno Leoni (IBL), presented the 2008 Index of Economic Freedom in Rome. The IBL invited speakers to discuss the decline of economic freedom in Italy over the last 12 months. Il bel paese ranks as the 64th freest economy in the world, with Hong Kong at number one and the U.S. at five.

Italy’s economic problems were blamed on corruption and weak law enforcement. While corruption to some extent reflects individual moral failings and certainly does affect economic growth, the reverse is also true: corruption tends to flourish in environments already hostile to markets and free competition.

Bad and excessive regulation tends to create opportunities for the arbitrary use of power when dealing with citizens and companies. This, in turn, distorts market incentives and deters investment but it also creates mistrust among people and alienates them from the governing institutions. Better and less regulation, on the other hand, not only boosts economic growth but could tackle a more deeply-rooted crisis of political and social ethics.

Not surprisingly, a labor union representative at the IBL event argued for stronger government to fight corruption at the expense of additional economic reforms. He unfortunately missed the point: The lack of economic freedom simply leads to more opportunities for the moral evils that already plague Italy.

Blog author: jballor
Tuesday, November 20, 2007
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Regis Nicoll over at The Point notes a WaPo story that is getting a lot of play on the blogosphere about the UN’s downgrade of the estimate of the extent of the AIDS epidemic, “U.N. to Cut Estimate Of AIDS Epidemic: Population With Virus Overstated by Millions.”

Nicoll writes that while of course it is good news that fewer people are infected than were previously thought, “The bad news is that previous estimates were inflated because of politics, bad science, or both.”

Nicoll continues, “While reading the announcement, I couldn’t help but draw parallels with certain climate change proponents and Intelligent Design critics whose tactics involve alarmism, exaggerated estimates and the politicization of science to protect their study grants and mandarin status.”

That’s something I’ve been wondering about a long time, and have previously drawn comparisons between climate change alarmism and the exaggerated claims of the spread of AIDS (as well as between the challenged position that ID proponents and climate change skeptics share).

The financial incentive for governments, the UN, and NGOs to play up potential cash cows for their pet social and scientific agendas is one that cannot be overlooked. And it’s the sort of corruption that those who really want to tackle corruption should take a hard look at.

An interesting article in the Los Angeles Times detailing how badly wrong Robert Mugabe’s supporters in the West have been from the very beginning (requires “free” registration; may I suggest BugMeNot?):

From the beginning of his political career, Mugabe was not just a Marxist but one who repeatedly made clear his intention to run Zimbabwe as an authoritarian, one-party state. Characteristic of this historical revisionism is former Newsweek southern Africa correspondent Joshua Hammer, writing recently in the liberal Washington Monthly that “more than a quarter-century after leading his guerrilla army to victory over the racist regime of Ian Smith in white-minority-ruled Rhodesia, President Robert Mugabe has morphed into a caricature of the African Big Man.”

But Mugabe did not “morph” into “a caricature of the African Big Man.” He has been one since he took power in 1980 — and he displayed unmistakable authoritarian traits well before that. Those who were watching at the time should have known what kind of man Mugabe was, and the fact that so many today persist in the contention that Mugabe was a once-benign ruler speaks much about liberal illusions of African nationalism.

It turns out that useful idiots still exist, and sadly, probably always will.

Lawrence Lessig, a legal scholar and high-profile advocate of copyright reform, has decided to “shift my academic work, and soon, my activism, away from the issues that have consumed me for the last 10 years, towards a new set of issues.”

His new task? “‘Corruption’ as I’ve defined it elsewhere will be the focus of my work. For at least the next 10 years, it is the problem I will try to help solve.”

Just how does Lessig define “corruption”? In an extended Disclosure Statement and Statement of Principle, Lessig writes about his non-corruption principle, which is “about money.” Corruption is further defined as “the subtle pressure to take views or positions because of the financial reward they will bring you.”

Here is Lessig’s non-corruption principle, in its precise form: “I never promote as policy a position that I have been paid to advise about, consult upon, or write about. If payment is made to an institution that might reasonably be said to benefit me indirectly, then I will either follow the same rule, or disclose the payment.”

Lessig discloses the motivation for his decision, saying, “I am someone who believes that a free society — free of the ‘corruption’ that defines our current society — is necessary for free culture, and much more. For that reason, I turn my energy elsewhere for now.”

Kris Mauren (far right) and African guests get ready to visit GFS.

Acton University is now well underway, and on Wednesday a group of seven African attendees joined Kris Mauren on a visit to Gordon Food Service’s Grand Rapids headquarters for an up-close look at ethical capitalism. Mauren called it a great opportunity for people from countries with barren and corrupt markets to see an efficient, principled business for themselves. “The management of GFS also has a strong concern for philanthropy and international missions,” he said. “So it’s a great model of the capitalist ideal to hold up for these folks, who are used to a much more hostile economic climate.”

The group met with Gordon Food Service management for a luncheon, then toured the company’s office and factory area. Harry Ayile, formerly from Ghana and now residing in Norway, was completely blown away by what he observed. “It was like … wow,” Ayile commented with a smile. He was struck by the dedication shown by the company’s workers. “At every level, the workers are extremely well-organized, focused, and committed to doing their jobs excellently,” he said.

Ayile was astonished at how the “energetic” GFS employees took pains to avoid mistakes in the orders they were filling. “The business has a good system of checks and balances, and most of the employees have been there for fifteen years or more,” he said. “They take true satisfaction in their work.”

Comparing Gordon Food Service’s methods to the way business is done in Africa and even in Europe, Ayile said his visit couldn’t have been more of an eye-opener. “Before I came to Acton, I thought all people who did business were evil,” he said.

Ayile recalled one food-production company in Ghana that deliberately had been selling expired grain infested with maggots. “They would just sift out the maggots, package the grain, and sell it at full price,” he said. “Finally one employee caught on to what was happening and was able to produce evidence and pictures, but it went on for awhile.” Ayile called the incident typical of business practices in much of Africa, which lacks the institutional support necessary for free enterprise to flourish. When the rule of law is unreliable, incentives for greedy and corrupt behavior often outweigh the benefits of integrity. He added that many businesses “show very little respect for the consumer, as opposed to the way American businesses like Gordon Food Service care about their customers.”

Ayile and others from the group — which included visitors from the Congo, Kenya, and other African countries — all said they were very impressed with the way GFS invested in its employees and how these employees, in turn, were invested in the success of the company. Although Africa has a long way to go, Ayile said his visit was inspiring and gave him hope for the future of Ghana and other developing countries in Africa.

Check out Global Integrity, “an independent, non-profit organization tracking governance and corruption trends around the world. Global Integrity uses local teams of researchers and journalists to monitor openness and accountability” (HT: Librarians’ Internet Index: New This Week).

There are limitations, of course, such that countries such as Venezuela or China are not listed as of yet. But Global Integrity might be one valuable tool to add to your “global citizen’s” toolkit.

And while we’re on the topic, don’t forget to add this to your toolkit as well: A Theory of Corruption, by Osvaldo Schenone and Samuel Gregg.

Blog author: jspalink
Wednesday, December 6, 2006
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Delta Airlines has rejected a hostile $8.53 billion takeover bid from U.S. Airways, saying that it much prefers to remain independent. But Delta, and a lot of other airlines, might be doing consumers a favor by joining a consolidation push, says Anthony Bradley. “Given the nature of the industry today, proper stewardship of commercial airlines implies reform,” he writes.

Read the commentary here.

Transparency International is a group devoted to exposing corruption of all kinds. One of the most sickening forms of corruption in many poor countries is health care corruption. One sort of corruption is absentee-ism: medical personel bill for their services even when they aren’t at work, but are doing another job.

The increasingly large and legal market for pharmaceutical drugs is attracting criminal activity. Pharmaceuticals are high value and easily portable, and the penalty for stealing or smuggling them is far lower than for narcotics, so trade is brisk. This is especially the case in Africa where borders are porous to those prepared to pay bribes. Furthermore pharmaceutical markets are segmented internationally since companies recouping research and development costs want to charge efficient prices in vastly different settings for products with very low marginal costs. Antiretrovirals (ARVs) to treat HIV have 20-fold price differentials between western and African countries, which mean illegal but massive arbitrage possibilities exist for smugglers.

Once again, lack of virtue retards economic development.