delays, inefficiencies in payment procedures, lack of transparency in government activities, all were compounded by, as they created conditions that promote, corrup- tion. Countries where these barriers flourish could not participate effectively in the global economy.

Among the worst problems was that of the pervasive, sometimes petty, and often invisible corruption that affected the entire business environment. Many tried to blame such conditions on bureaucrats. The ICC, however, would prefer to consider bureaucrats a part of the solution, rather than as the problem. A country has no greater asset than the professional, disinterested services of an efficient bureaucracy, and business placed a premium on operating in environments where this was the case. She noted in particular the significance of customs for business. In the past half century, international trade had increased fifteen-fold. To deal with the growing volume of time-sensitive trade, what was needed was "just in time" customs service. This in turn demanded substantial new investment in equipment and personnel. The long-term benefits of these sorts of improvements would also operate to decrease the possibilities of corruption in the customs systems.

[...]Operating in the international environment exposed companies to many prob- lems and issues which they did not encounter domestically. The demand for corrup- tion took many forms, and it was sometimes difficult to be able to identify or even recognize a demand for a bribe. Firms required the assistance of clear rules, consis- tently applied, to navigate in such potentially confusing conditions.

The ICC, to assist its companies, would in April publish a new manual on fight- ing bribery. Firms need to understand how to operate in the new environment estab- lished by the OECD Convention. Issues that would be addressed in this publication included the responsibility of enterprises, the role of agents, money laundering, re- lationship between corporate codes and government reforms, political contributions, among many others.[...]

Business leaders around the world would like to see and end to corruption. They do not like to pay bribes. However, they will not cease doing so unilaterally, when they believe competitors do bribe. For this reason, business strongly favored wide adoption and implementation of the OECD Convention.[...]

6. Legal Frameworks and Enforcement Authorities

Eric H. Holder, Jr., Deputy Attorney General, United States [...]The serious consequences of judicial and law enforcement corruption are often misunderstood or rationalized. The myth that public corruption is a victimless crime that harms no one is one of the biggest lies in public life today. Corruption has many victims, particularly when it involves courts and law enforcement agencies.[...]

Corruption is a judicial system has other less obvious victims. Ensuring public safety and providing a system of justice are core functions of government. Corrup- tion of those functions touches almost every aspect of political and economic life, and poses a powerful threat to the freedom and prosperity that the courts and police preserve. A public perception that the criminal justice system is corrupt makes the

34 TRENDS IN ORGANIZED CRIME / FALL 1999

job of law enforcement harder. Witnesses who have lost faith in the system do not come forward, testify or cooperate in investigations. Judges and juries are more reluc- tant to convict criminals when they do not trust the police and prosecutors who present cases. Loss of public confidence in the institutions of justice can set in motion a down- ward spiral by deterring honest citizens from pursuing careers in public service.

Corruption in judicial and law enforcement systems also threatens the ability of the global community to respond to the growing threat of international crime, espe- cially from international criminal organizations which often are very adept at using corrupt officials to protect their operations. With the growth of international drug trafficking, computer crime and terrorism, it is essential that law enforcement agen- cies share information and work together. A perception that these agencies are cor- rnpt and untrustworthy will prejudice effective law enforcement cooperation on an international level.

There are many way to reduce corruption. A comprehensive strategy should in- clude a wide array of administrative and managerial practices designed to enhance integrity. However, criminal law enforcement must be the cornerstone of any strat- egy to control public corruption. To rid a public institution of systematic corruption, especially when linked to organized crime, preventive measures are inadequate and it is necessary to use criminal law enforcement.

Public corruption cases are difficult to investigate and prosecute. Experience in the United States is that corruption cases against judges, prosecutors or police are especially difficult and present special challenges. Prosecutors are often reluctant to investigate and prosecute police officers or other prosecutors with whom they regu- larly associate. Police agencies sometimes cannot be trusted to investigate them- selves. Judicial corruption investigations can cause judges to distort decisions in unrelated cases to affect the outcome of the investigations. Aggressive investigative techniques like undercover operations and electronic surveillance are often needed to make a provable case, but these techniques can attack the morale of honest judges, pros- ecutors and police. A code of silence and a culture of noncooperation frequently keeps police from coming forward with information or otherwise cooperating with investiga- tions involving corruption by fellow officers. Decisions not to investigate or pros- ecute allegations of judicial or law enforcement corruption are often difficult to justify publicly and can be seen as efforts to cover up embarrassing misconduct.[...]

Sang Cheon Park, Minister of Justice, Korea [...]The fight against corruption in Korea faced certain obstacles. One was the ele- ment of courtesy that had always been customary in Asian society. Traditionally, it had been considered natural to thank or reward someone who had provided a favor, and this was often considered an Asian virtue. However, such favors endangered the public service, and it was necessary to make the public aware that such gifts endan- gered the honest functioning of government.

Second, low pay of public officials was a serious problem. There was a saying in Asia that a sufficiency of food and clothing teaches persons how to behave. When public employees were paid salaries insufficient to live, this was a permanent invita- tion to corruption. For the time being, in Korea's current economic circumstances, it

GLOBAL FORUM AGAINST CORRUPTION 35

was necessary to rely on moral suasion. For the long term, adequate public salaries were mandatory.

Philip B. Heymann, Harvard University School of Law, United States [...]Preventing corruption thus entails changing these conditions. To justify the offer of a large bribe, a private individual must perceive a high financial stake, with a single official source for what is needed. Reducing monopoly powers of officials, privatizing government activities, introducing competitive systems, all worked to reduce the monopoly power of single officials that would justify offer to them of large bribes. It was also necessary to work to narrow the extent of discretion of an official, through the application of rules, regulations and bureaucratic procedures entailing review of decisions and actions.

Further, it is important to enhance the visibility of bribes, in order to release public anger at corruption. There was no target for such public anger unless the bribery became visible. Those involved in corrupt transactions need each other. The official must be in a position to deliver services. The briber must be able to arrange to meet, to deliver the proceeds of a bribe, and to secure the desired result. These were all things that might be made visible, and disclosure of any part of these trans- actions was an essential part of fighting corruption.

To accomplish this, if there is seriousness of purpose to do so, law enforcement authorities needed certain types of authorities and capabilities. They needed access to audit records. Strong inducements to witnesses to offer testimony were necessary, as are investigative techniques such as electronic surveillance, wiretapping and use of undercover agents. Many countries do not allow use of these techniques. Another strong power of prosecutors in the United States that was not available in many other countries is the power to reduce the sentence of persons that could provide testimony to successfully prosecute more serious crimes. Persons arrested for other offenses, such as drug dealing, were always aware that the United States govern- ment considered acceptance of bribes by officials as a very serious offense. Within government agencies, it was important that management take early action to iden- tify exposures to corruption, through use of audits and appropriate organizational and bureaucratic procedures, and to use management powers where corruption oc- curred. Managers must be held accountable for any visible corruption that took place within their area of responsibility. Even if a corrupt official, or one unwilling to act aggressively against corruption, could not be successfully prosecuted and imprisoned, that official need not be kept in office. [...]

Vasyl Durdynets, Director, National Bureau of Investigation, Ukraine [...]Two sets of factors substantially affected the problem of corruption in Ukraine. First, Ukraine is in an unfinished process of social transformation. It is still entering the international market economy, reform processes were still underway and social transformations were incomplete. This created substantial crises in economic and social life. Second, the legislative basis and administrative structures necessary to uphold the principles of integrity and civility were still being developed. These fac- tors were conductive to the spread of corruption and organized crime...

36 TgENDS IN OgGANIZED CRIME / FALL 1999

The government pays special attention to the experience of other countries in fighting corruption. Ukraine is party to eight international conventions on crime and 14 treaties on legal assistance, has ten bilateral treaties and 40 interagency agree- ments on these subjects. [...] International cooperation was very important in stop- ping laundering of criminal funds in offshore jurisdictions and preventing criminals from finding any safe haven abroad.

In the last three years, the number of bribery cases uncovered has increased by 32%, and 1100 criminal cases have been filed with courts for the past three years,. In 1996-98, 20,000 officials were dismissed from agencies of the Ministry of Inte- rior, and rotation of other serving laws enforcement officials has been actively pro- moted. [...]

7. Upholding Integrity Among Justice and Security Forces

Dr. Charles Moskos, Moderator, Weinberg College of Arts and Sciences, Northwestern University, United States [...]There has been a good deal of research done on corruption involving business and economic interests. Very little has been done on judges and security officials. This is surprising, since punishing other criminals depends on having honest courts and officials to try them.

It had been said at this meeting that a decent salary and pension were necessary for security officials to be honest. Yet there was little valid information on earnings of police officers in most of the world. It is certain that far too many do not enjoy a decent living on their official salaries. Yet even in countries where police were rela- tively well-compensated, like the United States, police corruption still exists. Obvi- ously, an adequate salary was a necessary, but not a sufficient, condition for official probity. Does every man have his price? Clearly, a number of factors entered into the answer. However, an adequate salary, and pension to provide assurance of retire- ment, were requirements.

[...]At the individual level, he suggested that it was necessary to go beyond the accepted models of economic man to determine the factors that influenced behavior, since it was often difficult or impossible to adequately quantify or place an eco- nomic value on factors like ethics or integrity. Yet non-economic values clearly ex- isted and were potent influences on human behavior. Consider for example the fact that virtually all people dealt with members of their families differently than with others, How many, for instance, would turn in a family member, even for corruption or other serious crime? Even the deadly Unibomber's having been given up to au- thorities by a family member had struck many people as unusual and noteworthy. This had no demonstrable economically determined basis, but factors of this nature clearly entered importantly into official behavior.

At an organizational level, it is important that practices such as personnel recruit- ment, training, promotion and advancement policies, be structured to promote in- tegrity. Taking some issue with a concept popular in the United States today, he suggested that the idea of "vetting" foreign law enforcement personnel, then provid-

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