As many of you know, Guatemala has been in the throes of a serious political crisis for several months. Since April, the UN-led International Commission Against Impunity in Guatemala (CICIG) has revealed that top government officials, up to and including the president and now ex-vice president, ran a graft ring, known as “La Linea,” which allowed private businesses to forego paying customs duties at the border in exchange for a bribe. Accusations reached as high as the president's office.
While knowledge of the extent of these corruption scandals has continued to unfold over the past few weeks, I have been in the capital, getting the opportunity to get to know the city a little more, as well as attend some of the events offered here. Recently, I went with some of my co-workers to a conference presented by Oxfam and ICEFI (Instituto Centroamericano de Estudios Fiscales). At this event, the organizations presented a joint study (in Spanish) that they recently completed regarding the problem of corruption, how it develops, and the cost it imposes on society. As the “La Linea” corruption scandal unfolds here in Guatemala and the people take to the streets to peacefully demonstrate against such violations, an understanding of the development and costs of corruption seems particularly relevant.
Corruption: A Shared Crime
Corruption is the use of power for personal gain. As the study states, use of the government's power, in conjunction with the private sectors complicity, has created a system of special privileges, paid for by the use of public resources derived from taxes. The development of corruption is enabled by out-of-date legislation, weak institutions, deficient access to public information, scarce civic participation, conflicts of interest and impunity.
Corruption forms a vicious cycle, perpetuating itself by becoming both profitable for elites and necessary for politicians to achieve and maintain political power. At the same time, it impoverishes the majority of the citizens, many times affecting the most vulnerable the most, robs the people of public services, and alienates them politically, as they realize they can make little change without the connection or money to grease the right palms. Thus, citizens' belief that they can achieve change through the use of political processes diminishes, leading to low and apathetic civic participation.
The Oxfam study found that in Latin America twenty percent of the value lost due to corruption went to government actors; the other eighty percent of the pilfered funds went to the private sector. This phenomenon can be seen in many of the latest scandals in Guatemala: while people have come out strongly against the government for its leadership of La Linea, relatively little of the rage has been directed against the main businesses that profited handsomely from the government allowing them to avoid paying customs duties. Corruption among government officials rouses more popular anger than that of the private sector, most likely due to the clear violation of the social contract committed by the government against its citizens, damaging political stability and government credibility. Nonetheless, the private enrichment of a few economic elites is responsible for much of the cost born by the population.
The Real Cost of Corruption
While it can be difficult to calculate the exact costs of corruption, given its inherently clandestine nature, the study calculated what a twenty percent loss looked like for different sectors in which the Guatemalan government might use its public funds every year. Among many other things, the loss of this money means that
These losses most deeply affect the most vulnerable in society: those who are most in need of public programs are left without access to healthcare, clean water, education, infrastructure or any other benefit due them, while those who already have access to vast sums profit from the pilfering of these programs.
The Power of Civic Involvement
One of the above mentioned factors that contributes to the prevalence of corruption is limited civic participation; for this reason, a little corruption can lead to much more, as citizens doubt their ability to effect change without resources, connections or political power, and step back from active participation. In Guatemala, some have become so disgusted by the prevalence of corruption that they have long given up on active political participation; however, many others have remained unfazed, continuing to bravely make their voices heard in the face of an unconcerned government. They offer a diverse array of voices, presenting ideas for how to put an end to this corruption.
One woman who participated in the panel noted that the government had completely refused to do basic road maintenance on the single, pothole-covered road that led to town. Therefore, the people in the community had come together time after time to fill potholes themselves. Cognizant of the strength of the community to handle such problems themselves, she called for devolution of government power, with the government providing some funds but relying on communities to make decisions about funding based on local understanding of their own needs.
Another causal factor of corruption is impunity. In a society where more than ninety-nine percent of crimes committed during the country's thirty-six year internal conflict remain unpunished, and where many of those guilty for those crimes remain in positions of power, impunity runs rampant. Therefore, those citizens who have bravely testified in the country's genocide trial, despite threats to their own personal safety from the responsible and powerful parties, contribute to the struggle against impunity. Their willingness to take this risk not only helps to finally bring justice for the genocide's victims, but also to bring about the end of impunity and corruption.
While these human rights defenders have tirelessly fought against impunity and corruption at the national level, simultaneously demanding respect and autonomy for community governance, many of the country's citizens had for some time been too frightened or disillusioned to contribute in this fight. However, as the news of government corruption has spread, a fuse has been lit – people have come into the streets week after week for five months, demanding change. Today, some of their demands have been met, as Congress took action to strip Otto Pérez Molina of his presidential immunity for his role in La Linea, while protesters awaited the decision outside. Active civic participation, demands for transparency and good governance and calls for an end to impunity have finally put a chink in the ongoing cycle of corruption.
While knowledge of the extent of these corruption scandals has continued to unfold over the past few weeks, I have been in the capital, getting the opportunity to get to know the city a little more, as well as attend some of the events offered here. Recently, I went with some of my co-workers to a conference presented by Oxfam and ICEFI (Instituto Centroamericano de Estudios Fiscales). At this event, the organizations presented a joint study (in Spanish) that they recently completed regarding the problem of corruption, how it develops, and the cost it imposes on society. As the “La Linea” corruption scandal unfolds here in Guatemala and the people take to the streets to peacefully demonstrate against such violations, an understanding of the development and costs of corruption seems particularly relevant.
Corruption: A Shared Crime
Corruption is the use of power for personal gain. As the study states, use of the government's power, in conjunction with the private sectors complicity, has created a system of special privileges, paid for by the use of public resources derived from taxes. The development of corruption is enabled by out-of-date legislation, weak institutions, deficient access to public information, scarce civic participation, conflicts of interest and impunity.
Corruption forms a vicious cycle, perpetuating itself by becoming both profitable for elites and necessary for politicians to achieve and maintain political power. At the same time, it impoverishes the majority of the citizens, many times affecting the most vulnerable the most, robs the people of public services, and alienates them politically, as they realize they can make little change without the connection or money to grease the right palms. Thus, citizens' belief that they can achieve change through the use of political processes diminishes, leading to low and apathetic civic participation.
The Oxfam study found that in Latin America twenty percent of the value lost due to corruption went to government actors; the other eighty percent of the pilfered funds went to the private sector. This phenomenon can be seen in many of the latest scandals in Guatemala: while people have come out strongly against the government for its leadership of La Linea, relatively little of the rage has been directed against the main businesses that profited handsomely from the government allowing them to avoid paying customs duties. Corruption among government officials rouses more popular anger than that of the private sector, most likely due to the clear violation of the social contract committed by the government against its citizens, damaging political stability and government credibility. Nonetheless, the private enrichment of a few economic elites is responsible for much of the cost born by the population.
The Real Cost of Corruption
While it can be difficult to calculate the exact costs of corruption, given its inherently clandestine nature, the study calculated what a twenty percent loss looked like for different sectors in which the Guatemalan government might use its public funds every year. Among many other things, the loss of this money means that
- More than 700,000 children between the ages of two and five won't receive treatment for parasites, which often lead to malnutrition in growing children.
- 500,000 future mothers will go without prenatal care
- 1 million primary school students will go without workbooks at school
- 1 million bags of food will not be delivered to families living in extreme poverty
These losses most deeply affect the most vulnerable in society: those who are most in need of public programs are left without access to healthcare, clean water, education, infrastructure or any other benefit due them, while those who already have access to vast sums profit from the pilfering of these programs.
The Power of Civic Involvement
One of the above mentioned factors that contributes to the prevalence of corruption is limited civic participation; for this reason, a little corruption can lead to much more, as citizens doubt their ability to effect change without resources, connections or political power, and step back from active participation. In Guatemala, some have become so disgusted by the prevalence of corruption that they have long given up on active political participation; however, many others have remained unfazed, continuing to bravely make their voices heard in the face of an unconcerned government. They offer a diverse array of voices, presenting ideas for how to put an end to this corruption.
One woman who participated in the panel noted that the government had completely refused to do basic road maintenance on the single, pothole-covered road that led to town. Therefore, the people in the community had come together time after time to fill potholes themselves. Cognizant of the strength of the community to handle such problems themselves, she called for devolution of government power, with the government providing some funds but relying on communities to make decisions about funding based on local understanding of their own needs.
Another causal factor of corruption is impunity. In a society where more than ninety-nine percent of crimes committed during the country's thirty-six year internal conflict remain unpunished, and where many of those guilty for those crimes remain in positions of power, impunity runs rampant. Therefore, those citizens who have bravely testified in the country's genocide trial, despite threats to their own personal safety from the responsible and powerful parties, contribute to the struggle against impunity. Their willingness to take this risk not only helps to finally bring justice for the genocide's victims, but also to bring about the end of impunity and corruption.
While these human rights defenders have tirelessly fought against impunity and corruption at the national level, simultaneously demanding respect and autonomy for community governance, many of the country's citizens had for some time been too frightened or disillusioned to contribute in this fight. However, as the news of government corruption has spread, a fuse has been lit – people have come into the streets week after week for five months, demanding change. Today, some of their demands have been met, as Congress took action to strip Otto Pérez Molina of his presidential immunity for his role in La Linea, while protesters awaited the decision outside. Active civic participation, demands for transparency and good governance and calls for an end to impunity have finally put a chink in the ongoing cycle of corruption.