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1. Authoritarian kleptocrats are thriving on the West’s failures. Can they be stopped?

Author:
Francis Shin and Ben Judah
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
A hidden web of power revealed itself to Internet users in early 2022. Following a brutal government crackdown in Kazakhstan in January, anyone using open-source flight-tracking websites could watch kleptocratic elites flee the country on private jets. A little more than a month later, Russia’s invasion of Ukraine brought a new spectacle: social media users were able to track various oligarchs’ superyachts as they jumped from port to port to evade Western sanctions. These feeds captured a national security problem in near real time: In Eurasia and beyond, kleptocratic elites with deep ties to the West were able to move themselves and their assets freely despite a host of speeches by senior officials, sanctions, and structures designed to stop them. Kleptocratic regimes—kleptocracy means “rule by thieves”—have exploited the lax and uneven regulatory environments of the global financial system to hide their ill-gotten gains and interfere in politics abroad, especially in the United States, the United Kingdom, and the European Union. They are aided in this task by a large cast of professional enablers within these jurisdictions. The stronger these forces get, the more they erode the principles of democracy and the rule of law. Furthermore, the international sanctions regime imposed on Russia in response to its invasion of Ukraine has little hope of long-term success if the global financial system itself continues to weaken. The West still has a long way to go to rein in the authoritarian kleptocrats who have thrived on the institutional dysfunction, regulatory failure, and bureaucratic weakness of the transatlantic community for far too long. We need to rethink not just how we combat kleptocracy, but also how we define it. Policy makers need to understand that authoritarian regimes that threaten transatlantic security are closely linked to illicit financial systems. As it stands, our thinking about how foreign corruption spreads is too constrained by stereotypes about kleptocratic goals and actions.
Topic:
Corruption, Diplomacy, Intelligence, Politics, Sanctions, Authoritarianism, Reform, European Union, Regulation, Finance, Economy, Rule of Law, and Russia-Ukraine War
Political Geography:
Russia, United Kingdom, Europe, Ukraine, Canada, and United States of America

2. Los retos de Honduras en materia de inseguridad. El dilema de Xiomara Castro ante el populismo punitivo y de la seguridad.

Author:
Javier Lozano Cobos
Publication Date:
10-2023
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
La militarización y el combate como herramienta casi exclusiva contra la violencia y la inseguridad ha sido el paradigma de profundo calado en Honduras y la mayor parte de la región, lo que implica la solución a los problemas de inseguridad en clave de guerra. Este conflicto asimétrico entre los grupos criminales y los Estados se recrudeció a raíz de la Guerra contra las Drogas iniciada por el presidente mexicano Calderón, y no es sino la continuación de las diversas guerras contra ya ensayadas en Centroamérica bajo inspiración de los EEUU. Con la llegada al poder de la presidenta hondureña, Xiomara Castro, se advertía un cambio en relación a las políticas de seguridad que no se enfocaran exclusivamente en la mano dura, sino que abordara la reforma integral del Estado priorizando la lucha contra la corrupción y la impunidad, así como la mejora de la calidad de la democracia. Una ola de populismo punitivo recorre la región, pero la mejora en los niveles de inseguridad en Honduras no será sostenible mediante el uso exclusivo de la fuerza ni estados de excepción.
Topic:
Corruption, Human Rights, War on Drugs, Democracy, Geopolitics, Inequality, Populism, and Militarization
Political Geography:
Latin America, Honduras, and United States of America

3. Enemies Foreign and Domestic: Confronting Kleptocrats at Home and Abroad

Author:
Kelly M. McFarland
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Institute for the Study of Diplomacy, Edmund A. Walsh School of Foreign Service, Georgetown University
Abstract:
As Putin and his kleptocratic regime of oligarchs wage a devastating war in Ukraine, the costs of corruption have never been so starkly visible. Beyond Russia, recent examples of corruption in China, Afghanistan, the Northern Triangle, the Solomon Islands, and elsewhere, prove that rampant corruption poses a significant threat to aspirations for a greener, healthier, more peaceful, and more democratic world. Countries such as Russia and China have elevated their brand of corruption into a distinct and powerful aspect of their foreign policy. They employ this strategic corruption abroad to stunt economic growth; prop-up fellow authoritarian regimes; exacerbate social inequality; erase political trust; accelerate pandemics and degrade healthcare systems; exploit the environment; and propel state oppression. As U.S. policymakers seek to counter this strategic corruption, they must first recognize the extent to which domestic laws and actors within the United States enable this corruption to fester. In the fall of 2021 and spring of 2022, ISD convened a series of New Global Commons working group meetings with participants drawn from academia, think tanks, government, international organizations, non-governmental organizations, and the private sector. The group crafted workable definitions of corruption, evaluated the unique political and related threats posed by corruption and kleptocracy, assessed Russia and China’s use of strategic corruption, and developed principles and recommendations for government and non-government entities to build a global, sustained, anti-corruption response.
Topic:
Foreign Policy, Corruption, Diplomacy, Authoritarianism, and Kleptocracy
Political Geography:
Russia, China, North America, and United States of America

4. Measuring the Impact of Campaign Finance on Congressional Voting: A Machine Learning Approach

Author:
Matthias Lalisse
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
How much does money drive legislative outcomes in the United States? In this article, we use aggregated campaign finance data as well as a Transformer based text embedding model to predict roll call votes for legislation in the US Congress with more than 90% accuracy. In a series of model comparisons in which the input feature sets are varied, we investigate the extent to which campaign finance is predictive of voting behavior in comparison with variables like partisan affiliation. We find that the financial interests backing a legislator’s campaigns are independently predictive in both chambers of Congress, but also uncover a sizable asymmetry between the Senate and the House of Representatives. These findings are cross-referenced with a Representational Similarity Analysis (RSA) linking legislators’ financial and voting records, in which we show that “legislators who vote together get paid together”, again discovering an asymmetry between the House and the Senate in the additional predictive power of campaign finance once party is accounted for. We suggest an explanation of these facts in terms of Thomas Ferguson’s Investment Theory of Party Competition: due to a number of structural differences between the House and Senate, but chiefly the lower amortized cost of obtaining individuated influence with Senators, political investors prefer operating on the House using the party as a proxy.
Topic:
Corruption, Elections, Legislation, and Money
Political Geography:
North America and United States of America

5. How to Target Iran’s Kleptocracy

Author:
Nate Sibley
Publication Date:
10-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The death of Mahsa Amini in the custody of Iran’s so-called morality police sparked protests that continue to spread across the country, posing the most serious challenge to Tehran’s theocratic dictatorship in years. The demonstrations have focused on opposing the compulsory wearing of the hijab, but Iranians are also venting anger at a regime that has lost legitimacy after decades of political repression, economic mismanagement, and systemic corruption. Policymakers in the United States are rightly focused on constraining Iran’s nuclear program and state sponsorship of terrorism. Sanctions and other measures targeting the regime’s illicit financial networks tend to reflect these urgent priorities. But Iran’s theocratic regime is also a sprawling, deeply entrenched kleptocracy against which the US should apply more pressure. This brief examines the prevailing forms of corruption within Iran, the implications for US policy, and how the US can intensify efforts to expose and target the regime’s kleptocracy.
Topic:
Foreign Policy, Corruption, Human Rights, and Kleptocracy
Political Geography:
Iran, Middle East, and United States of America

6. The International Dimension of the U.S. Strategy on Countering Corruption

Author:
Mateusz Piotrowski
Publication Date:
02-2022
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The first Strategy on Countering Corruption, adopted on 6 December 2021, assumes that by making better use of existing international regulations and organisations, as well as by establishing new mechanisms, the U.S. will tighten global anti-corruption cooperation. The American goal is to limit the freedom to conduct financial operations by authoritarian states, mainly China and Russia, and at the same time to strengthen democratic countries and promote democracy. For Poland, this is an opportunity to tighten bilateral and multilateral cooperation with the United States.
Topic:
Corruption, International Cooperation, Authoritarianism, Democracy, and Multilateralism
Political Geography:
Russia, China, North America, and United States of America

7. Fighting Corruption in the Arab World Should Be a U.S. Priority

Author:
Imad K. Harb
Publication Date:
11-2022
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
In June of 2021, the Biden administration announced that it would be establishing the fight against corruption as a core concept in US national security and a pillar of its foreign policy.1 The following December, it launched the “US Strategy on Countering Corruption” as a “whole-of- government” initiative to, among other objectives, curb illicit financing, hold corrupt actors accountable, and improve diplomatic engagement and leverage foreign assistance in the pursuit of its policy goals.2 With the United States the premier actor in international politics and influence, the administration set out to formulate strategies, lay down markers, and implement policies that can help at least make a dent in the scourge of corruption around the world. Today, the task of fighting international corruption must include the countries of the Arab world, most of which are close political, economic, and strategic partners of the United States. Corruption in the region is eroding what little is left of social and political stability. From bribery to influence peddling, and from the use of public and official power for private gain to interference with the judiciary, the region’s corruption requires diligent internal and international efforts to address it. Democracy and economic development depend first on the striving of the region’s populations to ensure and protect their human rights, but also on an active role played by the United States government and its many institutions.
Topic:
Foreign Policy, Corruption, and Diplomacy
Political Geography:
Middle East, Arab Countries, North Africa, and United States of America

8. War on Corruption

Author:
Josh Rudolph
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Kleptocracies seem to enjoy powerful coherence between their domestic and foreign policies, given that they wield power at home and abroad through the same corrupt assemblage of actors, networks, tactics, and resources. By prioritizing the fight against corruption and kleptocracy, the United States can similarly pursue the most internally coherent grand strategy since it combined the containment of communism with neoliberal deregulation to win the Cold War. Doing so will require deeply reorienting foreign and domestic policy priorities by featuring the opposite side of the U.S. economic model, with less cowboy and more sheriff: well-regulated clean capitalism under the rule of law.
Topic:
Foreign Policy, Corruption, Capitalism, Grand Strategy, and Kleptocracy
Political Geography:
Global Focus and United States of America

9. Operation Condor, The War on Drugs, and Counterinsurgency in the Golden Triangle (1977-1983)

Author:
Adela Cedillo
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
In the late 1960s, the Mexican government launched a series of counternarcotics campaigns characterized by the militarization of drug production zones, particularly in the northwestern region—the so-called Golden Triangle, epicenter of both production and trafficking of marijuana and opium poppy since the 1930s. Operations Canador (1969–1975) and Trizo (1976) served as a laboratory for methods to curb drug production, ranging from harassment of drug growers to the aerial defoliation of illicit crops. Operation Condor (1977–1988) combined and enhanced these strategies, wreaking havoc on communities of alleged drug growers, but without entirely disrupting the drug industry. This paper explores the role of the US government in the militarization of Mexico’s anti-drug policy, underscoring how the ruling party (the Institutional Revolutionary Party, PRI) took advantage of this shift to tackle domestic issues and reassert its hegemony. I argue that Operation Condor functioned as a counterinsurgency campaign oriented to thwart both social and armed movements, eliminate competitors in the narcotics market, and reorganize the drug industry to protect successful drug lords. Operation Condor also caused the decentralization of the drug industry from the northwest and created a new clientelistic pact between drug lords and national security agencies, such as the Federal Security Directorate (DFS), the Office of the Attorney General of Mexico–Federal Judicial Police (PGR-PJF), and the Secretariat of National Defense (SEDENA), which benefited from drug proceeds. Finally, the de facto state of siege imposed in the Golden Triangle produced thousands of victims of harassment, torture, rape, murder, forced-disappearance, and displacement; massive human rights abuses that authorities either concealed or denied.
Topic:
Security, Corruption, Human Rights, Governance, Social Movement, History, Borders, and Violence
Political Geography:
Latin America, North America, Mexico, and United States of America

10. The Era of Dis-and-Misinformation Volume XXII, Number 1

Author:
Nicole Kalczynski, Rebecca Blaser, Nicholas J. Cull, Peter J. Phillips, Gabriela Pohl, Michael Christensen, Leonie Holthaus, Bohdan Harasymiw, Feeza Vasudeva, Nicholas Barkdull, Arthur D. Soto-Vásquez, Nadra Hashim, and Vincent Chenzi
Publication Date:
08-2021
Content Type:
Journal Article
Journal:
The Journal of Diplomacy and International Relations
Institution:
School of Diplomacy and International Relations, Seton Hall University
Abstract:
As the world continues to recover from the devastating fallout of the COVID-19 pandemic, navigating the harms of misinformation and disinformation remain at the forefront of global conversations on paving the path forward. Preventing the dissemination of false information—particularly during a time where the ways in which we engage with information environments have fundamentally changed—is increasingly complex. Social media platforms have enabled users to not only engage with media but become distributors of it themselves. When coupled with bad actors, limited repercussions, and poor content regulation, social networks are easily weaponized. At all scales of governance misinformation and disinformation campaigns pose a multidimensional threat. In Myanmar and China, disinformation campaigns were leveraged to target minority groups, while in Central and Eastern Europe, they serve as the cornerstone of destabilizing operations between adversarial states. In yet another facet, countries like Turkey, China, Russia, and Iran have embraced digital authoritarianism and restrict policies on internet accessibility under the pretext of stemming the spread of “fake news.” This year’s issue seeks to shed light on the nature of these evolving threats from a variety of innovative and understudied perspectives. This issue explores the causes and effects of the spread of misinformation and disinformation throughout different parts of the world and will be timely for years to come given the ever-increasing role and breadth of new technologies infiltrating people’s everyday lives.
Topic:
Corruption, Human Rights, Science and Technology, Authoritarianism, Democracy, Media, Internet, Social Media, Surveillance, COVID-19, Disinformation, Misinformation, and Fake News
Political Geography:
Russia, China, Europe, Iran, Sudan, Eurasia, Turkey, Ukraine, Middle East, India, Eastern Europe, Asia, Myanmar, Central Europe, and United States of America

11. Countering Global Kleptocracy: A New US Strategy for Fighting Authoritarian Corruption

Author:
Nate Sibley and Ben Judah
Publication Date:
01-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
In the most comprehensive kleptocracy policy study yet published, Nate Sibley and Ben Judah examine the pervasive threat to democracy, prosperity and security posed by globalized corruption and offer 70 recommendations for US policymakers.
Topic:
Corruption, Authoritarianism, Criminal Justice, and Kleptocracy
Political Geography:
North America, Global Focus, and United States of America

12. Coordinating the War on Corruption

Author:
Josh Rudolph
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
The Biden administration has a historic opportunity to unify U.S. domestic and foreign policy through an aggressive mission to combat corruption and kleptocracy. Middle-class Americans are frustrated by perceptions of corruption at home, while authoritarian regimes are organized as oligarchies weaponizing corruption around the world. While these trends have fueled passionate discourse in recent years, the Biden administration should seek a legacy of achieving actual results by institutionalizing anti-corruption reforms throughout U.S. and international financial, diplomatic, and legal systems, including a formidable raft of new policies and commitments to be showcased at the Summit for Democracy, which Biden has pledged to host in his first year in office. The administration should start with powerful regulatory action to root dirty money out of the U.S. financial system. Within the first 100 days of this anti-corruption reform initiative, Treasury should take ten initial steps, the two strongest being finalizing a 2015 proposal to make private equity and hedge funds identify their customers and publishing the first-ever National Corruption Risk Assessment. After the first 100 days but within the first year of this effort, Treasury should take another seven steps, such as regulating more enablers and writing strong rules for the new beneficial ownership registry. The White House should also work together with Congress to eliminate dark money from politics and work with the Justice Department (DOJ) to deliver and communicate tangible policy and enforcement outcomes that most Americans would see as truly “draining the swamp.” The White House, in consultation with Treasury and partners at the Organization for Economic Cooperation and Development (OECD) and the Financial Action Task Force (FATF), should push for a landmark international agreement to end offshore financial secrecy, including commitments around public beneficial ownership registries, automatic exchange of tax information, a cross-border payments database, and steps toward a global asset registry, as well as sanctions to motivate cooperation with all the above. The United States Agency for International Development (USAID) should scale up support for anti-corruption activists. The Department of State should integrate an anti-corruption action fund into pre-existing efforts, recommit to international anti-corruption initiatives that languished under Trump, and strengthen internal coordination and capacity-building efforts. Law enforcement should pressure kleptocrats by publicizing confiscated assets and banned individuals while reforming global mechanisms suffering from abuse (e.g., EB-5 golden visas, mutual legal assistance treaties, Interpol, etc.). The ambitious 100-point anti-corruption agenda described in this report is achievable, but only if the White House supports it as a top policy priority, including the commitment of resources needed to dedicate a small team to coordinate the work, which could take the form of either a standalone directorate at the National Security Council (NSC) or a task force of staffers drawn from several White House components. To energize Treasury, State, USAID, DOJ, and other departments and agencies at a high level, this team should be run by a White House senior director dedicated exclusively to anti-corruption and a designated senior leader such as the Vice President, coordinating efforts across the areas of democracy and human rights (DHR), international economics (Intecon), the Domestic Policy Council (DPC), and other White House offices. This White House anti-corruption team should be staffed with at least three directors, each dedicated to one priority area: building a global coalition, rooting out dirty money, and showing compelling results to the American people.
Topic:
Corruption, Politics, and Finance
Political Geography:
United States of America

13. Dark money politics: Why Europe should join Biden’s fight against corruption

Author:
Chris Raggett
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Many Europeans and Americans believe that their political systems are corrupt. This disillusionment, combined with kleptocrats’ increasing use of “strategic corruption” in Europe and elsewhere, destabilises Western politics and damages the transatlantic relationship. US President Joe Biden has responded to these challenges by declaring that the fight against corruption is a core national security priority and part of his “foreign policy for the middle class”. European policymakers should draw on his approach to anticorruption to help rebuild the Western alliance and address the abuse of entrusted power in their own societies. They should set up high-profile, DfID-style national institutions that are charged with tackling corruption and capable of working within an international network.
Topic:
Foreign Policy, Corruption, National Security, Public Opinion, European Union, Joe Biden, and Dark Money
Political Geography:
Europe and United States of America

14. What is Wrong

Author:
Kemal Koprulu
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
While delving further into the systemic issues such as corruption, biased media, and lack of accountability that have been plaguing the American political system, this article, the second of a multi-part article, argues that the Biden administration’s policies in the next four years will have irreparable repercussions for the US and global community alike. America is far from being “back”—and, in fact, is at its weakest. With the specter of a rising China and its ties to Democratic politicians and donors becoming increasingly visible, containing China during Biden’s presidency will be impossible. Despite their efforts to divert attention away from China and toward Russia, Democrats’ corrupt acts will come back to haunt them— especially ahead of the 2022 and 2024 elections.
Topic:
Corruption, Leadership, Accountability, and Transparency
Political Geography:
North America and United States of America

15. Book Talk. America Kleptocracy by Casey Michel

Publication Date:
12-2021
Content Type:
Video
Institution:
The Harriman Institute
Abstract:
Please join us for a discussion with Casey Michel, author of American Kleptocracy: How the U.S. Created the World's Greatest Money Laundering Scheme in History (St. Martin's Press, November 2021). Moderated by Alexander Cooley, Director of the Harriman Institute. A remarkable debut by one of America's premier young reporters on financial corruption, Casey Michel's American Kleptocracy offers an explosive investigation into how the United States of America built the largest illicit offshore finance system the world has ever known. An indefatigable young American journalist who has virtually cornered the international kleptocracy beat on the US end of the black aquifer. —The Los Angeles Review of Books For years, one country has acted as the greatest offshore haven in the world, attracting hundreds of billions of dollars in illicit finance tied directly to corrupt regimes, extremist networks, and the worst the world has to offer. But it hasn’t been the sand-splattered Caribbean islands, or even traditional financial secrecy havens like Switzerland or Panama, that have come to dominate the offshoring world. Instead, the country profiting the most also happens to be the one that still claims to be the moral leader of the free world, and the one that claims to be leading the fight against the crooked and the corrupt: the USA. American Kleptocracy examines just how the United States’ implosion into a center of global offshoring took place: how states like Delaware and Nevada perfected the art of the anonymous shell company, and how post-9/11 reformers watched their success usher in a new flood of illicit finance directly into the U.S.; how African despots and post-Soviet oligarchs came to dominate American coastlines, American industries, and entire cities and small towns across the American Midwest; how Nazi-era lobbyists birthed an entire industry of spin-men whitewashing trans-national crooks and despots, and how dirty money has now begun infiltrating America's universities and think tanks and cultural centers; and how those on the front-line are trying to restore America's legacy of anti-corruption leadership—and finally end this reign of American kleptocracy.
Topic:
Corruption, Finance, Kleptocracy, and Banking
Political Geography:
North America and United States of America

16. Hezbollah Has a New Strategy to Survive Lebanon’s Financial Crisis

Author:
Hanin Ghaddar
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Unless Washington and its allies respond to the protestors’ legitimate demands for reform, the group will survive through measures such as expanding its smuggling activity, promoting its financial institutions, and selectively scapegoating corrupt politicians. When IMF officials visited Lebanon late last month amid its accelerating economic freefall, many wondered whether these developments might alter the behavior of Hezbollah, the designated terrorist group that has a deep financial stake in the country’s public and private sectors. During a previous funding crisis—the increase in U.S. sanctions against the group’s chief underwriter, Iran—the “Party of God” and its foreign sponsors formulated a new strategy to evade these measures and create alternative sources of funding. Such sources allowed Hezbollah to make further inroads into government agencies following the 2018 parliamentary elections. For example, the group’s leaders insisted on controlling the Health Ministry, which commands Lebanon’s fourth-largest budget at $338 million per year; they also gained more access to the Ministry of Public Works and Transport, the Agriculture Ministry, and the Ministry of Energy and Water, whose assistance was used to fund their affiliated projects and businesses. That worked until Lebanon’s own economy began its current nosedive. Unemployment has hit a record high of 40 percent, and the lira has slumped by about 60 percent on the parallel market, hiking inflation. Officially pegged to the dollar, the currency has plummeted 40 percent on the black market as local banks ration dollars necessary for imports of food, medicine, and other essential goods. Meanwhile, Lebanon has one of the highest debt-to-GDP ratios in the world (over 150 percent) and may not be able to pay $1.2 billion in Eurobonds this month. As with the Iran sanctions, however, Hezbollah has a strategy to survive this domestic pressure, at least in the near term.
Topic:
Foreign Policy, Corruption, Debt, Politics, Protests, and Hezbollah
Political Geography:
Middle East, Lebanon, and United States of America

17. Regaining U.S. Global Leadership on Anticorruption

Author:
Abigail Bellows
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The stakes for the United States to escalate the fight against corruption have never been higher. U.S. security, economic, and political interests demand a greater focus on countering corruption internationally. The next administration could substantially increase U.S. impact on anticorruption through taking the following measures: Defending against the weaponization of corruption; Providing politically responsive anticorruption assistance; Mainstreaming anticorruption; Enabling U.S. leadership.
Topic:
Security, Corruption, Leadership, and Economy
Political Geography:
North America and United States of America

18. The Georgia Risk-Limiting Audit/Hand Tally: A Carter Center Observation Report

Author:
The Carter Center
Publication Date:
11-2020
Content Type:
Special Report
Institution:
The Carter Center
Abstract:
Following the November 2020 election, Georgia conducted a risk-limiting audit (RLA) of the presidential race. This audit constituted the largest hand tally of an election race in U.S. history. The Carter Center, which has observed more than 110 elections in 39 countries, was the only nonpartisan organization credentialed by the Office of the Secretary of State to provide an impartial assessment of the implementation of the audit process. The Center had the same access provided to the political party monitors who were present throughout the state. In deploying independent monitors to observe the Georgia RLA, The Carter Center hoped to bolster voter confidence in Georgia’s electoral process by assessing the state’s efforts to improve the transparency of its elections.
Topic:
Corruption, Elections, Voting, Participation, Election Dispute, and Audit
Political Geography:
North America and United States of America

19. Treasury’s War on Corruption: A U.S. Treasury Department Strategy to Fight Kleptocracy and Root Dirty Money Out of the U.S. Financial System

Author:
Josh Rudolph
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
The incoming Biden administration has signaled through speeches, articles, and interviews that one of its top policy priorities will be combating corruption and kleptocracy.1 With Russia and China’s increasing usage of strategic corruption and malign finance as geopolitical weapons, and with publics around the world—including in the United States—angry about economic inequality and perceived corruption at home, anti-corruption offers a unique opportunity to unify U.S. foreign and domestic policy. Diplomats and lawmakers agree that cracking down on corruption may be the most viable way to restore American leadership by meeting demands for accountability from citizens all over the world.2 Corruption will be the topic of a dedicated special session of the UN General Assembly in June.3 The issue should get support from leaders at a G7 summit in the U.K. around the same time.4 Fighting corruption will also be one of the three areas for new country commitments at the Summit for Democracy that President-elect Joe Biden plans to host during his first year in office.5 At that summit, the U.S. commitment will be a “presidential policy directive that establishes combating corruption as a core national security interest and democratic responsibility.”6 Making this U.S. and international anti-corruption campaign a lasting success will require more than words. In the months ahead, while the administration’s top leadership and the nation’s public health and economic experts are focused on ending the pandemic and rebuilding the economy, the U.S. national security and financial enforcement community should get to work laying the groundwork for a raft of powerful anti-corruption executive actions to be announced in time for the Summit for Democracy. Concurrently, U.S. diplomats should leverage those plans to insist that countries attending the summit make similarly hard commitments, setting a high bar for admission.7 Regulatory rulemaking by the U.S. Treasury Department could usher in several landmark reforms that have been recommended for many years by financial enforcers, multilateral standard-setting bodies, and anti-corruption watchdogs. This policy opportunity is possible because the reforms never overcame opposition by special interests during the period before corruption became a leading national security threat roughly five years ago, and then they were generally not prioritized by the Trump administration. The most potent achievable action available would be for Treasury to set rules requiring several types of professional service providers that enable corruption to institute anti-money laundering controls whereby they would have to identify their ultimate customers and start alerting Treasury of suspicious activity, as is required of U.S. banks.8 Of the industries enabling corruption by helping wealthy clients hide money, ten could be regulated immediately by revoking regulatory exemptions to the Bank Secrecy Act, including real estate agents, private equity and hedge funds, sellers of yachts and airplanes, and seven other types of exempted financial institutions.9 Other key enablers would require new regulatory determinations with strong legal and political backing, such as lawyers, accountants, company formation agents, and art dealers. Treasury’s Financial Crimes Enforcement Network (FinCEN), which administers the Bank Secrecy Act, must write stringent regulations to implement the newly mandated beneficial ownership registry, resisting pressure by special interests to water it down. Treasury should also leverage concerns about the recently leaked “FinCEN Files” to work with Congress on a major investment in FinCEN, potentially on the scale of the seven-fold jump in budgetary resources needed by Treasury to implement recent reforms to the Committee on Foreign Investment in the United States (CFIUS).10 Treasury should publish its first-ever National Corruption Risk Assessment about the financial networks of kleptocracies and oligarchs, reviewing case studies and methods to assess vulnerabilities and risk. Treasury should create a cross-border payments database and make financial institutions scrutinize politicians’ accounts more closely. Treasury should continue supporting two policy initiatives that have developed strongly to pressure kleptocracies in the past couple years by internationalizing Global Magnitsky sanctions and collaborating with the International Monetary Fund on corruption engagement. The U.S. Treasury Department is uniquely positioned to roll out these and other policy, regulatory, enforcement, and diplomatic actions in the fight against corruption, because it is the only part of the U.S. government with a foothold in each area of domestic and international finance that will be key to rooting dirty money out of the global financial system and applying pressure on kleptocrats and their oligarch proxies. Many of Treasury’s most highly developed capabilities have grown out of past fights against top national security threats, such as terrorist financing. The two months following the September 11 attacks witnessed one of the most energetic and well-coordinated performances in Treasury Department history. With Treasury not yet organized and coordinated around anti-corruption, achieving anything like past feats would require Treasury to start by establishing a small team devoted exclusively to this new mission. Specifically, the Treasury Under Secretary for Terrorism and Financial Intelligence (TFI) should appoint a counselor dedicated to developing and advancing anti-corruption initiatives, from expanding the coverage of the U.S. anti-money laundering regime to prioritizing the threats of strategic corruption and malign finance across Treasury’s policy, intelligence, and enforcement efforts. Some of these projects could bear fruit in 2021, while others need longer-term development of capabilities to find kleptocrats’ money hiding within the financial system and prepare policy options to confiscate, sanction, or reveal it. The TFI anti-corruption counselor, who should be designated as early as possible in the administration, should have a staff of two and a mandate to coordinate with and leverage resources across the four principal TFI offices, while also cooperating with Treasury’s Office of International Affairs. And while the White House National Security Council should lead the overall fight against kleptocracy and corruption, the TFI anti-corruption counselor should serve as Treasury’s senior working-level point of contact for collaboration between Treasury and the rest of the U.S. government, as well as with international partners, civil society, and Congress. Combating corruption and kleptocracy will be one of the top priorities of the Biden administration, and Treasury has the resources to start delivering major results quickly. But to do so it must coordinate throughout the Treasury Department and with external partners to roll out big executive actions in 2021.
Topic:
Corruption, Finance, and Kleptocracy
Political Geography:
Russia, China, and United States of America

20. Shadow Lobbyists

Author:
Rocco d'Este, Mirko Draca, and Christian Fons-Rosen
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Special interest influence via lobbying is increasingly controversial and legislative efforts to deal with this issue have centered on the principle of transparency. In this paper we evaluate the effectiveness of the current regulatory framework provided by the US Lobbying Disclosure Act (LDA). Specifically, we study the role of ex-Congressional officials who join US lobbying firms in positions that could be related to lobbying activity but without officially registering as lobbyists themselves. We find that firm lobbying revenues increase significantly when these potential ‘shadow lobbyists’ join, with effects in the range of 10-20%. This shadow lobbyist revenue effect is comparable to the effect of a registered lobbyist at the median of the industry skill distribution. As such, it is challenging to reconcile the measured shadow lobbyist effect with the 20% working time threshold for registering as a lobbyist. Based on our estimates, the contribution of unregistered ex-Congressional officials could explain 4.9% of the increase in sectoral revenues, compared to 24.0% for the group of registered officials.
Topic:
Corruption, Government, Politics, Regulation, Money, Lobbying, and Revolving Door
Political Geography:
North America and United States of America

21. Fight and Flight: Tackling the Roots of Honduras’ Emergency

Author:
International Crisis Group
Publication Date:
10-2019
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
Despite U.S. restrictions on Central American migration, Hondurans are fleeing north in record numbers as the country struggles with polarised government, corruption, poverty and violence. With outside help, Tegucigalpa should revisit its heavy-handed security policies and enact judicial and electoral reforms to avert future upheaval. What happened? Months of street protests and a mass northward exodus, despite a sustained U.S. campaign to deter Central American migrants, illustrate the depth of despair in Honduras at political leaders, gang violence, extortion, poverty and inequality. Why does it matter? State security crackdowns against a backdrop of extreme political polarisation dating back to the 2009 coup, fuelled by scandals over alleged links between the ruling party and criminal networks, could further fuel violent unrest. Washington’s fixation on bottling up migrant flows in the region risks making a bad situation worse. What should be done? With support from the U.S. and other donors, the Honduran government should enact electoral and anti-corruption reforms and grant stronger investigative powers to the judiciary and police, avoid heavy-handed responses to civil unrest, and fund programs that address urgent humanitarian needs while also reducing violence, a key driver of migration.
Topic:
Security, Corruption, Migration, and Immigration
Political Geography:
Central America, Honduras, and United States of America

22. The U.S. Military in Support of Strategic Objectives in Latin America and the Caribbean

Author:
Dr. R. Evan Ellis
Publication Date:
02-2019
Content Type:
Journal Article
Journal:
PRISM
Institution:
Institute for National Strategic Studies (INSS), National Defense University
Abstract:
This article examines the role that the U.S. military plays, and can play, in advancing U.S. strategic objectives in Latin America, with a focus on security cooperation and administration of security assistance efforts, as part of coordinated whole-of-government approach. It argues for greater U.S. military attention to the development and application of strategic concepts built around strengthening governance, as the approach that is both appropriate to sensitivities and limitations regarding the employment of U.S. armed forces in Latin America, and as an effective bulwark against the cycle of criminality, corruption, and populism that opens the door for significant strategic threats against the United States. These include authoritarian anti–U.S. governments that serve as enablers for widespread criminality, terrorist threat networks, and collaboration with hostile extra-hemispheric state actors such as Russia and the People's Republic of China.
Topic:
Corruption, Military Strategy, Governance, Hegemony, Strategic Interests, and Influence
Political Geography:
Latin America, Caribbean, North America, and United States of America

23. The Venezuelan Crisis and Salvador Allende's Glasses

Author:
Juan S. Gonzalez
Publication Date:
02-2019
Content Type:
Journal Article
Journal:
PRISM
Institution:
Institute for National Strategic Studies (INSS), National Defense University
Abstract:
The situation in Venezuela is deeply worrisome, and the countries of the hemisphere have an important responsibility to the Venezuelan people. It is also in the national interest of the United States for Venezuela to prosper as a nation, while seeking to pursue policies supported by its people through a stable and fair democratic process. There is a serious lack of meaningful and productive dialogue between the Venezuelan government and its own people at a time when the country’s economy is in crisis. The United States can and should lead, but it should follow the lead of the Venezuelan opposition, and avoid reverting to the Cold War-era unilateral action that until recently defined much of our foreign policy toward the region. Such an approach will not usher Venezuela back to its place as one of the most economically and politically consequential countries in Latin America. At least that is what Allende’s glasses seem to say.
Topic:
Corruption, Governance, Democracy, and Regionalism
Political Geography:
South America, Venezuela, North America, and United States of America