Corruption and concessions

On July 9 the American Enterprise Institute held a panel discussion about the intersection between authoritarian corruption, dictatorial regimes, terrorism, and criminal abuse of free markets. The panel guests included Bruce Bueno de Mesquita, Julius Silver Professor of Politics at New York University and a senior fellow at Stanford’s Hoover Institution, and Daniel Twining, President of the International Republican Institute. The panel was moderated by Clay R. Fuller, Jeane Kirkpatrick Fellow at AEI, where he researches authoritarian governance, illicit finance, and corruption. 

Mesquita noted that the traditional perpetrators of corrupt acts are not limited to autocrats, terrorists or drug dealers. Even democratically elected leaders present corruption risk, especially when they make deals with corrupt actors, even though the deals are meant to further the interests of a democratic nation. This is one of the reasons it is so difficult to combat corruption. To solve the problem, countries must address the question of how to please constituents on key policy issues without “concessions” to corruption. Corrupt government leaders can pay their cronies, to the detriment of the citizens.   

Twining said that when democratic countries support corrupt governments through concession payments to further foreign policy agendas, there is a spillover into surrounding countries. Terrorism, migration, and human trafficking can be tracked to corrupt and kleptocratic governance.

Fuller discussed corruption more broadly, noting that corruption is not unique to kleptocratic, despotic, and authoritarian regimes. Rather, corruption in these systems of governance is more visible and perhaps more detrimental to large swathes of the populace because it privileges a small group, granting them nearly all legitimate government powers. 

With regards to how to mitigate corruption, Mesquita focused on the promotion of transparency. More government transparency drives accountability, which can spur the development of good governance. Constituents can play an important role in democratic states. It is important to educate their publics about the effects that corruption has in authoritarian countries, and the way that concession payments can contribute to corruption. Education on this issue will increase the priority that democratic governments give to better governance overseas, rather than just a blind pursuit of foreign policy goals. 

Furthermore, Mesquita believes that the promotion of democracy is key to good governance abroad. While the United States has tried to promote democracy, past attempts have frequently fallen short. Mesquita thinks that US efforts have not been sincere; autocrats will comply more readily to US policy in exchange for money if there are no stipulations regarding changes in government. However, the biggest barrier to dealing with corruption is the fact that despots rely on few people to stay in power. Corrupt leaders allow their cronies to steal, launder money, and pad their coffers at the expense of citizens as long as they remain loyal. 

Twining discussed the effect that the Chinese Belt and Road initiative is having on corruption globally. Specifically, in parts of Asian, Africa, the Middle East, and Latin America, authoritarian leaders are taking Chinese loans, aid, and investments. These deals contribute to corruption in local politics because they are often not transparent. Furthermore, they involve a potential loss of sovereignty, especially if they default on loans. He concluded that the United States has an important role to play in buttressing transparency and accountability globally. The desire for freedom and good governance is universal.