International   

U.K. move to crack down on Third World corruption

By Hasan Suroor

LONDON SEPT. 1. In what is being described as a major initiative to break the nexus between "corrupt'' Third World politicians and multinational corporations, which have been accused of using money power to buy favours, Britain is to insist that all MNCs operating in developing countries must disclose details of the money they have paid to local governments.

Initially, it would be a voluntary move but the British Prime Minister, Tony Blair, has threatened that if it does not work the Government would legislate to punish the black sheep. Among other things, they could be struck off the Stock Exchange.

The initiative, widely welcomed by pressure groups and development agencies, follows growing concern here over the insidious effect of the big business-politician nexus in developing countries, particularly in Africa. Many international bodies such as Save the Children and the Tear Fund have been campaigning on the issue saying that the "culture'' of bribes and "grease money'' is affecting their efforts fight poverty in Third World countries. The main targets of the proposed crackdown would be oil, gas and mining companies which are said to account for most of the allegedly corrupt practices estimated to be worth several billion pounds a year. A spokesman for Global Witness, working in Africa, said that investigations in Angola alone had revealed that the "fraud'' ran into at least one billion dollars a year.

The British Government was reported to be concerned that profiteering by multinationals working in league with local governments was leading to "weak governance'' in Third World countries and jeopardising poverty eradication efforts. There is a move by Britain to call a conference of governments, MNCs, pressure groups and U.N. agencies to launch a coordinated campaign for greater transparency in financial dealings between big businesses and host governments.

John Hillary of Save the Children welcomed the move describing it as a "first step'' but expressed his scepticism whether a voluntary initiative would work.

He said his group would be "pushing hard to make it mandatory''.

The issue is expected to be raised at the Johannesburg Earth Summit to pressure governments into accepting a code of conduct in their dealings with transnational corporations.

Printer friendly page  
Send this article to Friends by E-Mail

International

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• Support waning for Bush move on Iraq
• Russia holds key to oil stability
• Chandrika hardens stand on LTTE
• Two more Benazir papers rejected
• When Putin feared imprisonment
• Crackdown on Papuan rebels
• Russians bid adieu to 'evil Aug.'
• U.K. move to crack down on Third World corruption
• Pak. plans new defamation law
• Maoists attack Indian car showroom
• 'Befriending dictators can cost the U.S. dear'

Copyright © 2002, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu