Photo Credit: G20 Argentina
By John Zemko, Regional Director of CIPE’s Latin America and Caribbean Department
World leaders gathered recently in Buenos Aires, Argentina for G20 meetings intended to center around a theme of “Building Consensus for Fair and Sustainable Development.” The host country President Mauricio Macri has put fighting corruption at the core of his agenda.
It is not difficult to understand why. Bribery scandals in Argentina involving the Odebrecht conglomerate and other big companies have put a global spotlight on what can occur between venal public officials on the demand side of the corruption equation and public companies generating revenue streams on the supply side of the equation.
Nowhere is the risk of corruption clearer than in the management of state-owned enterprises. State-owned enterprises (SOEs) form a fifth of the world’s largest companies, often in strategic sectors such as natural resources, public utilities, and finance. Meanwhile, the Organisation for Economic Co-operation and Development’s (OECD) most recent Foreign Bribery Report states that over 80 percent of total pay-offs were either promised, offered or given to state-owned enterprise officials. Read More...