The Corrup*on- Security Nexus
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1 The Corrup*on- Security Nexus Akaash Maharaj GOPAC Chief Execu*ve Officer NATO Parliamentary Assembly 61 st Annual Session Stavanger, Norway 10 October 2015
2 Members in most countries of the world 57 na*onal chapters Regional chapters Africa: Accra, Ghana Arab: Beirut, Lebanon Caribbean: Port of Spain SE Asia: Jakarta, Indonesia S Asia: Kathmandu, Nepal La*n America: Mexico City Oceania: Perth, Australia About GOPAC
3 All free socie*es are democracies, but not all democracies are free Corrup*on is now the single greatest threat to democracy and security Parliamentarians can stand between our leaders and the levers of power Principles
4 Impact of Corrup*on Developing world loses $10 through corrup*on for every $1 in aid (UNDP) Corrup*on was the single most discussed subject on the planet (BBC World Service) Corrup*on drove the Arab Spring uprisings, a crisis of confidence in democracy itself
5 Stronger Parliament, Lower Corrup*on
6 Direct Impact on Security Foments public grievance and unrest, delegi*mises the state, fosters radicalism Enables hos*le and criminal powers to penetrate the state Damages the state s ability to detect or respond to threats
7 Ukraine as a GOPAC Priority One of three global priori*es Causes of its crisis trace to a catastrophic and endemic poli*cal corrup*on Security and survival of Ukraine is *ed to restraint of corrup*on Poten*al contagion effect Viktor Chumak MP, Chair of GOPAC Ukraine Individual GOPAC members in Ukraine and Russia
8 Extent of Corrup*on in Ukraine 142 nd of 175 na*ons in CPI: below Russia, Iran, Nigeria 25% of na*onal budget lost to poli*cal capture of VAT (Bilau) ~30% of state procurement embezzled ~55% of produc*vity in the shadow economy Worst performing post- soviet economy over 20a Daily normalised humilia*ons Corrup*on is the system
9 Corrup*on Provoking Unrest Orange Revolu*on 2004 Corrup*on in 2004 post- Kuchma elec*on 18.4% of Ukrainians assert par*cipa*ng in protests Euromaidan 2014 Endemic corrup*on during the Yanukovich regime Cancella*on of the EU Associa*on Agreement Civil repression laws
10 Corrup*on Driving Penetra*on Ukraine consumed 2 *mes as much power per $1 GDP as Russia, 30 *mes as much as Japan In 2012, 92% of Ukraine s gas came from Russia Every Ukrainian oligarch emerged from Russia- Ukraine gas deals, including Yanukovich & Tymoshenko
11 Corrup*on Undermining Defence 2014, up 25% of Defence budget stolen outright (Biryukov) In one defence factory, 81% of orders stolen (Yarema) Defence apparatus of thieves and grakers (Poroshenko) Unconfirmed accusa*on of general commissions are sold at $ per annum (Povernys Zhyvym) Credible accusa*ons of pres*ge pos*ngs, places military academies sold
12 Corrup*on Undermining Defence Ukrainian troops equipped with substandard equipment or not at all At Crimean invasion, ~6 000 combat ready (of total) troops across all Ukraine vs Russian troops massed just on border Russia offered Ukrainian troops in Crimea 5x their salary
13 Corrup*on Undermining Defence Current force of troops, plans to conscript and contract (Poltorak) Conscripts must oken equip themselves at ~$2 500, or 10x typical monthly salary Widespread bribery to avoid conscrip*on official cases of deser*on since Donbass, 30% of first- wave conscripts deserted posts (Poroshenko)
14 Corrup*on Undermining Defence In 2014, Ukrainians donated $2million to Defence through 50 text messages, $7million through businesses, bake sales 30 Ci*zen Brigades remain beyond na*onal command and control
15 Precedence: Reform or Funding? 2014 Disbursements Pledge Private Eurobond Holders IMF World Bank European Union United States ERBD and other lenders Total Billions of $USD IMF Ukraine Report 15/69. Bilam, Duane, Gorodnichenko, Sologoub
16 Precedence: Reform or Growth? Acemoglu, D, Naidu, S, Robinson, J, & Restrepo, P (2014). Democracy causes economic development? Vox. Centre for Economic Policy Research.
17 Solu*ons from Parliaments Enable civil an* corrup*on measures to improve Ukraine s security posi*on Strengthen Verkhovna Rada Build public confidence Pressure on Ukraine to reform its ins*tu*ons Pressure on Russia to halt military incursions Support Minsk II Encourage economic development
18 Strengthen Verkhovna Rada Train new parliamentarians Change poli*cal incen*ve environment Insist on parliamentary and ci*zen oversight of donor funds Create space for dialogue between Russian and Ukrainian legislators
19 Build Public Confidence Stolen asset recovery Specula*ve but highly emo*ve es*mates of $30bn - $40bn to return Frozen to date: Austria?, Switzerland $193m, Lichtenstein?, UK $23m Prosecute kleptocrats Pavlo Lazarenko arrested 1999, convicted 2006, released 2012
20 Ukrainian Ins*tu*ons Reform of police by new screening, training, pay 2000 in Kyiv, July 2015 Lviv and Odessa next Na*onal An* Corrup*on Bureau Na*onal Agency for Preven*on of Corrup*on Specialised An* Corrup*on Prosecutor s Office Judicial reform prosecutors, judges
21 Domes*cally, Russia faces an epic struggle between the television and the refrigerator Financial quaran*ne of oligarchs Only the argument that is persuasive is ac*on Russian Policies
22 How to devolve power without losing accountability? Significant difficul*es ~150 deaths Highly conten*ous in the Verkhovna Rada Russia has violated more than *mes (Poltorak) Elec*ons in Donetsk and Luhansk are uncertain Support Minsk II
23 Strong exis*ng co- opera*on Solu*ons from NATO NATO- Ukraine Commission NATO- Ukraine Joint Working Group on Defence Reform Act as a catalyst to an* corrup*on in Defence apparatus Support civilian an* corrup*on measures
24 Defence Apparatus Measures NATO Building Integrity model for assessment of Defence weaknesses Embed oversight assistance in Ukraine s central authori*es NATO- supported corrup*on inves*ga*on command apparatus Training and equipment Integra*on of selected Ukrainian defence firms into NATO business ethics and logis*cs chains
25 Financial Intelligence Tasks Forces are the civilian weapons of mass destruc*on against kleptocrats Ukraine may be berer suited to survive a war of fiscal rather than military arri*on Civilian Measures
26 21 st Century Grand Strategy What is the post- cold war disincen*ve against aggression by a great power?
27 Contact Akaash Maharaj Chief Execu*ve Officer Global Organiza*on of Parliamentarians Against Corrup*on Albert Street Orawa ON K1P 6A9 Canada +1 (416)
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