The 9th December is World Anti Corruption Day. Why does corruption matter?

The UN World Anti-Corruption Day is commemorated on 9 December. Some will argue that it is part of everyday life and present in every society. I personally disagree, as I believe that It erodes trust within societies –and particularly young people- between businesses and between nations. Corruption diverts resources from where they are most needed, fueling inequality and holding back social well-being.

Corruption also stifles economic growth and investment, and it increases the cost of doing business – increasing entry costs into a market, and deterring firms – particularly small and medium enterprises (SMEs) and entrepreneurs, who have fewer resources. Ultimately, this obstructs innovation and creates a more uneven playing field for everyone.

Corruption undermines prosperity by imposing a cost equivalent to 5% of global GDP (or $2.6 trillion –World Economic Forum) every year. The World Bank estimates that Bribery can add up to 10% to business costs globally and that over US$ 1 trillion is paid in bribes each year.

What is the UK doing against corruption?

The British Government is working to promote anti-corruption and transparency projects and activities in the UK and overseas by raising international standards on transparency in the international Forae, the United Nations and in the main international development organisations such as the World Bank, the IMF and regional development banks. It also encourages transparency of UK companies doing business overseas, accountability of the local state bodies and aims to increase civil society activity, based on the experience of similar initiatives in the UK.

How can this help transparency?

Over the past year, the G8 Summit, the UK Bribery Act and Open Government Partnership (OGP) have provided a strong platform to campaign for global change and promote transparency against corruption. As Presidency of the G8 and lead co-chair, of the Open Government Partnership, the UK pushed for more cooperation and exchange of information on open data, land, tax extractives, trade, beneficial ownership and governance. This is evident in the case of the British companies operating in Greece and by the code of practice of the UK based international audit firms. We have already seen examples where the authorities from the two counties have worked together and brought to justice companies and/or individuals, involved in bribery and corruption cases.

This is an ongoing process and we have to keep reminding ourselves that corruption is not only harmful to economic growth but also undermines the social fabric of societies.