Final Pols Exam: Crime
Terms in this set (20)
-the abuse of entrusted power (public office) for private gain
-nepotism, bribery, election fraud, tax evasions, embezzlement
-top industries: mining, real estate/construction, oil, and manufacturing
Corruption Before Cold War
-Non-issue with benign acceptance
-In some instances it was encouraged as it got more things accomplished
Corruption After Cold War
-Began noticing that countries in Africa with the least amount of development were the most corrupt
-WTO investigated and came out with a report that supported it
-Peter Eigen, left the WTO and started this organization
-Publishes a report each year that shows how corrupt countries are
-Countries with more bribery get less aid and investors (report matters)
-Nixon officials broke into DNC
-Caught trying to steal records
-Nixon tried to cover involvement
-Found out Nixon had gotten illegal funds during campaign
-Led US to examine companies abroad (found tons)
-Passed in 1977 by Carter after Watergate
-Made it illegal for US citizens to bribe officials in other countries
-It required companies to report and have correct reporting of accounting
-Made individual managers legally responsible if they knowingly engaged in bribery
-The only exception to corruption theory before Cold War
FCPA and Companies' Opinions
-You would think that companies would oppose it.
-But because it was so ethically laden, no company could support it
US's 5 reasons to pursue ending bribery worldwide
1) End of Cold War
2) President Clinton had campaigned on a platform of a level playing field for US companies abroad.
3) Thought this would reduce waste in international aid programs.
4) There was an increased visibility of corruption.
5) It was believed that an end was possible.
-US and OECD worked together to form legislation against bribery.
-Peter Eigen/Transparency International to help draft legislation
-The legislation criminalized the bribery of foreign officials and made it legal to prosecute against those who did.
-Foreign bribery was equal to domestic bribery.
-Different countries could still have different punishments for bribery.
Problems with Anti-Bribery Convention
1) Criminalized people who supply bribes, but do not punish people who ask for bribes.
2) Does not address cultural bribes.
3) Does not address the tax deduction of bribes.
4) Does not deal with domestic bribery.
5) Does not address the fact that bribery is a development issue.
6) Hard to enforce and no official sanctions.
-Illegal trade of drugs across borders which violates interdependent sovereignty.
-Economic as well as a security issue.
-It can be difficult to intervene in drug trades, bc relationships with these countries suffer.
-Many countries benefit from drug trade (esp lower class workers)
-US focus on attacking the supply of drugs (aka stop drugs from entering the US)
-When an individual needs to make money clean
-Hard to combat bc of wire transfers.
-You are required to report transactions over $10,000.
-Criminals make deposits right under this limit to avoid being caught.
-Since 1990's there has been an explosion of organized crimes.
-Globalization has helped these individuals get to the US more easily.
Money Laundering Steps
-Step 1: Placement
-Step 2: Layering (where globalization helps)
-Step 3: Integration
-List of animals you can not rade.
-The demand for these animals has grown with globalization.
-Hard to control bc of markets.
Illegal Arms Sales/Trading
-With the collapse of the USSR, weapons get in the hands of terrorists.
-Occurs a lot with small arms.
-Movies, songs, etc are traded illegally online.
-Due to digitization is hard to track.
Intellectual Property Rights
-Happens a lot with pharmaceuticals.
-Illegal Arms Sales/Trading
-Intellectual Property Rights