29 - Transparency and Anticorruption

Summary

Corruption is a current and complex problem with significant effects on trade. For example, at the time of writing the US Justice Department was intervening in a case against a large a pharmaceutical company. It was alleged that the company was responsible for a scheme of drug price increases in the US, as it “ … bribed doctors and their staffs to increase sales.” The price of the drug, addressing infant seizure disorder, had increased 97,000% since the year 2000. Also, many of the affected sales were driven by Medicare reimbursements.¹ This case suggests that corruption may:Corruption is also a concern in a global perspective. The UN Secretary-General António Guterres, when addressing the UN Security Council on the issue of corruption in post-war territories, stated that “Corruption robs schools, hospitals and others of vitally needed funds,” with negative effects on people’s rights, foreign investment, and the economy. Based on the World Economic Forum, the cost of corruption is at least $2.6 trillion, or five percent of the global gross domestic product (GDP). According to the World Bank, businesses and individuals pay more than $1 trillion in bribes every year.² Finally, the Organisation for Economic Co-operation and Development (OECD), through its Clean Government Initiative, has identified at least four negative effects of corruption, namely:The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) builds upon international instruments on corruption. It addresses them differently, by adhering to their principles, encouraging their observance, or mandating their ratification or accession. The list of instruments includes (Art. 26.6)