08 October 1998
(Op-ed column by William M. Daley) (580) (The following op-ed column by Secretary of Commerce William M. Daley, "Fighting International Corruption," appeared in the October 8, 1998 edition of the Washington Times. The column is in the Public Domain. No Republication Restrictions. The column must be attributed to the Washington Times.) Over the past several days, the annual meetings of the World Bank and International Monetary Fund have focused on how to deal with the growing global economic crisis. Officials from the United States and developed and developing countries around the world have debated both the reasons for the crisis and the means for responding to it. Both the diagnoses and the prescriptions for reform have varied. But almost all agree that the crisis is rooted to a considerable degree in a lack of transparency in both financial transactions themselves and in certain national and international institutions. This lack of transparency has contributed significantly to the high levels of corruption and cronyism that pervade many of the economies now in crisis. A communique issued by the finance ministers on Monday calls both on national governments and international financial institutions "to attach high priority to the promotion of good governance and the elimination of corruption." The same concerns about bribery and corruption apply to transactions - often procurement contracts - between businesses and governments. Every year, bribery influences awards of international contracts worth billions of dollars. The U.S. government estimates that, in the past four years alone, bribery by foreign firms may have affected in excess of $100 billion in international contracts - costing U.S. companies several billion of dollars in sales annually, and in turn American jobs. This bribery and corruption hurts not only U.S. companies and workers, but also the very countries which to date have allowed it to occur. Luckily, this realization is starting to hit home, and increased concern has been given to combating corruption in the procurement arena. This past year, the Organization for Economic Cooperation and Development (OECD), the Organization of American States and the United Nations all have made significant progress in the anti-corruption effort. The United States Congress now has an ideal opportunity to lead in the fight against international corruption by implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Legislation to do just that passed the Senate in July and is now pending in the House of Representatives. For nearly two decades, the United States was the only country in the world with a law -- the Foreign Corrupt Practices Act -- broadly prohibiting bribery of foreign officials. With the signing of the new OECD Convention in December by the United States and 32 other nations, virtually all of our major trading partners and competitors now have followed the U.S. lead. Implementation of the OECD Convention will go a long way toward leveling the playing field for U.S. businesses and their employees. No longer will the United States be acting on its own in prohibiting companies from engaging in bribery abroad. As Congress now prepares to adjourn for the year, it has an historic opportunity to cast a bipartisan vote for openness, transparency, and good government by passing the legislation to implement the OECD Convention. It is an opportunity that anyone interested in promoting American jobs and competitiveness cannot afford to miss.