When the new Iraqi government takes office in the coming weeks it will face the daunting task of reversing decades of state-sponsored looting, writes Peter Eigen, Chairman of Transparency International, a non-profit organisation dedicated to the fight against corruption. Transparency International\'s Global Corruption Report 2005 (www.globalcorruptionreport.org), released March 16, features a special section on post-war reconstruction. In this article, the author writes that infrastructure development has suffered greatly at the whims of dictatorship, the scheming of the Oil-for-Food programme, and the opaque contracts of the Coalition Provisional Authority, which doled out billions of dollars worth of construction and engineering contracts at break-neck speed in the aftermath of the war. The potential for abuse remains immense. The safety and prosperity of future generations, and by extension the success of peace and democracy, will rest, literally, on the foundations built today. It is indispensable that Iraqis see the new government as legitimate and accountable. The scene unfolding, however, does not bode well. The government should decentralise aid and reconstruction projects where possible, shortening reporting lines and strengthening a sense of ownership. A strong and independent local media is also vital to keep a watchful eye on those in power. Competitive and transparent bidding must be ensured. With unprecedented sums earmarked by the US government for Iraqi reconstruction and an oil industry and infrastructure still in tatters, the opportunities and the risks are immense. If urgent steps are not taken, Iraq will not become the emblem of democracy that many of us hope for; it will become the mother of all corruption scandals.
December 9 is UN International Anti-Corruption Day, in recognition of the first signing ceremony of the UN Convention against Corruption in Merida, Mexico, on 9 December 2003. Since then, 113 countries have signed the Convention, a milestone in international efforts to curb corruption, writes Peter Eigen, Chairman of Transparency International. Nepotism, patronage, and corruption do not just block development and deepen poverty, Eigen writes in this column. They also hold back the development of a private sector in developing countries, and deprive a new generation of the education and healthcare they need to be able to participate in economic development. Corruption not only diverts public funds into the pockets of well-connected individuals. It also deepens a country\'s indebtedness for generations to come: estimates put the cost of corrupt projects in developing countries at more than one-third of the debt burden of the developing world. Corruption robs children of their future, it breeds conflict, mistrust and even war. Corruption kills.
In election campaigns this year in Indonesia and the Philippines --countries that have been impoverished by the greed of successive corrupt leaders-- the presidential candidates have battled one another for the anti-corruption mantle, writes Peter Eigen, Chairman of Transparency International. In this analysis for IPS, Eigen writes that both countries are case studies in how corrupt leaders who take advantage of immense personal power and immunity from prosecution can devastate their populations by systematically plundering their wealth. The recent adoption of the United Nations Convention against Corruption is an important step towards the repatriation of money siphoned off by nefarious leaders. The first-ever UN International Anti-Corruption Day will be held on 9 December to pressure governments to ratify the Convention so that stolen assets can be returned to their rightful owners. Thirty ratifications are needed before the Convention comes into force. Citizens have a right to know what happens to the money managed by public officials in the developed and developing worlds, and to insist that donor and other government funds reach the intended recipients - the people.