The Business Case for Fighting Corruption
In the 1970s, the United States led a global movement to fight corruption and promote the rule of law. Over the years, the movement gained traction around the world, and various indices, such as the World Economic Forum's Global Competitiveness Index, Heritage Foundation's Index of Economic Freedom, and World Justice Project's Rule of Law Index were developed. These indices were able to highlight corruption as a widespread problem and consistent barrier to economic growth and wealth creation. Corruption often leads to higher transaction costs, which lead to less productivity and misallocated resources that, among other issues, dampens investment critical to economic growth. Promoting a culture of compliance and supporting civil society engagement (e.g., antitrust laws and whistleblowers) is essential for combating global corruption. A return to a focus on good governance - in particular, a leveling up of the global playing field for businesses to operate overseas while complying with international standards and U.S. regulations - will help companies maintain their competitiveness and facilitate investment and capital where it is needed the most.
Given a number of initiatives led by the private sector and civil society, corruption continues to get attention; but it is worth exploring additional ways that the U.S. government might lead global anti-corruption efforts and, in doing so, promote an expansion of the rule of law. Join us for a timely discussion with an expert panel about the business case for U.S. government involvement in combating corruption and supporting the rule of law.
This event is made possible by general support to CSIS.