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[Global corruption report 2003] North America
Dininio, Phyllis Anechiarico, Frank
Dininio, Phyllis
Anechiarico, Frank
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Abstract
"In North America, trends in corruption over the past year were characterised by financial and political scandals and influenced by the ‘war on terrorism’. Accounting scandals were a major theme, beginning with the bankruptcy of the Enron Corporation, considered the seventh-largest business in the United States, and the subsequent unravelling of a number of other top U.S. corporations, including Adelphia Communications, Global Crossing, Halliburton, Qwest, WorldCom and Xerox. The scandals raised crucial questions about the effectiveness of existing accounting regulations – as well as the influence of corporate money on U.S. politics – and led to proposals for tighter regulation of the accounting industry, improved disclosure of corporate information and tougher penalties on executives who mislead investors. They also spurred the passage of campaign finance reform to limit contributions to political parties after seven years of gridlock on the issue. Although the new law still faces legal challenges, it represents a major victory for the campaign to restrict the role of money in U.S. politics. In Canada, an ethics scandal enveloped the Liberal government of Prime Minister Jean Chrétien in May 2002. Despite allegations of patronage and favouritism in his administration’s awarding of contracts, Chrétien was resolute in his decision to stay in power. He removed the two ministers whose actions had caused a public outcry and announced new ethical guidelines for the remainder, along with changes to the laws governing lobbyist regulation and political party financing. The ‘war on terrorism’ led to positive and negative developments in the fight against corruption. On the positive side, it inspired new legislation in the United States with tighter provisions against money laundering. Yet it also prompted government action in both the United States and Canada that poses important challenges to transparency and curtails civil liberties. While NGOs in North America played strong advocacy roles in the last year, scandals as disparate as those in the Canadian media and the U.S. Catholic Church served to highlight the need for greater transparency and accountability."
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Book chapter
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2003
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1861974760
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With permission of the license/copyright holder