Anti-corruption Efforts in Latin America and the Caribbean

Anti-corruption Efforts in Latin America and the Caribbean

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February 1, 2022
Anti-corruption Efforts in Latin America and the Caribbean
Corruption in the Region
Anti-corruption Commissions and Their Closures
Corruption of public office holders remains an issue for
The United States has provided financial and political
countries in Latin America and the Caribbean (LAC), and
support to anti-corruption commissions backed by
an increasing area of focus for U.S. foreign policy and
international organizations. These hybrid bodies, which
congressional interest. The region is struggling to overcome
collaborate with local officials and operate within local
governance challenges that have worsened over the past
justice systems, have helped several countries investigate
two years, as the Coronavirus Disease 2019 (COVID-19)
significant public corruption abuses. However, political
pandemic has presented new opportunities for corruption
leaders have dismantled most of these bodies or allowed
and has frustrated efforts to combat it.
them to expire in the past three years.
The annual Corruption Perceptions Index (CPI) of the
Guatemala. Guatemala’s anti-corruption commission, the
nongovernmental organization Transparency International
International Commission Against Impunity in Guatemala
compares perceived public sector corruption among 180
(CICIG), was an independent international body designed
countries; the 2021 CPI notes, “countries of the Americas
to support the country’s justice system. CICIG was created
have ground to a halt in the fight against corruption.” Of the
by an agreement between the Guatemalan government and
32 nations surveyed in LAC, 18 (shown in Figure 1) have
the United Nations (U.N.) in 2006, with support from civil
stayed in roughly the same relative order for the past five
society activists. CICIG supported investigations that led to
years. The CPI measures perceived rather than actual
the prosecution of numerous high-ranking officials and the
corruption; actual corruption is difficult to measure because
2015 indictment of the sitting president and vice president.
of its opaque nature and different definitions for the
CICIG faced increasing pressure from political and
phenomena. However, numerous U.S. and global agencies
economic elites who were the subjects of its investigations,
use the CPI as a benchmark and diagnostic tool for
as well as diminished U.S. support under the Trump
comparing relative levels of transparency.
Administration. In 2019, President Jimmy Morales (himself
Figure 1. Selected LAC Countries from Transparency
the subject of probes) allowed the body to expire.
International’s 2021 Corruption Perceptions Index
Honduras. The Mission to Support the Fight Against
Corruption and Impunity in Honduras (MACCIH) was
created through a 2016 agreement with the Organization of
American States (OAS). Although the MACCIH was more
limited than CICIG in its investigatory power, it worked
with Honduran prosecutors to indict 133 individuals,
including dozens of legislators and other government
officials, during its four-year mandate. The MACCIH also
proposed legislation to address the structural causes of
corruption, resulting in the enactment of campaign finance
reforms and the creation of anti-corruption courts. Those
efforts sparked political resistance from Honduran officials
and powerful elites in the private sector, and President Juan

Orlando Hernández allowed the MACCIH’s mandate to
Source: Transparency International, Corruption Perceptions Index
expire in January 2020.
2021, January 25, 2022, at http://www.transparency.org/cpi. Graphic,
CRS.
El Salvador. In 2019, Salvadoran President Nayib Bukele
Notes: Figure shows a representative selection of LAC countries.
established the International Commission Against Impunity
Scores are scaled 0 to 100, where 0 is highly corrupt and 100 is “very
in El Salvador (CICIES) in collaboration with the OAS.
clean.” Countries are ranked from 1 to 180, with 1 the lowest and
CICIES originally had a narrower scope than either CICIG
180 the highest level of perceived corruption relative to other
or the MACCIH, lacking the authority to carry out
countries.
independent investigations or prosecute cases. Numerous
Regional U.S. Anti-corruption Efforts
civil society organizations proposed strengthening CICIES
The United States employs several tools to combat
by extending its prosecutorial powers and establishing its
corruption in LAC and worldwide. These tools include
independence from the executive branch. In 2020, CICIES
support to independent anti-corruption commissions or
launched investigations into the misuse of funds intended to
bodies; legislative tools, including sanctions and measures
address the COVID-19 pandemic, including by the
of corruption by country; and foreign assistance programs
executive branch. In June 2021, President Bukele
implemented by U.S. agencies.
terminated the agreement that founded CICIES, leading to
the commission’s dissolution.
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Anti-corruption Efforts in Latin America and the Caribbean
Ecuador. In 2019, President Lenín Moreno announced the
demonstrate by example the advantages of transparent,
creation of the Commission of International Experts to
accountable governance. As with many existing foreign
Fight Corruption in Ecuador (CEICCE) in cooperation with
assistance efforts targeting corruption, the strategy’s focus
the U.N. Office on Drugs and Crime. The CEICCE never
is official government abuse of power, or public corruption.
came to fruition during Moreno’s administration, reportedly
The Administration also announced a new State
due to insufficient resources. Although anti-corruption
Department Coordinator for Global Anti-corruption.
initiatives were a central feature of President Guillermo
Typology of Public Corruption
Lasso’s campaign, following his inauguration in May 2021,
the future of a CEICCE-type commission remains unclear.
The U.S. Strategy on Countering Corruption cites five il ustrative
types of public corruption. All five types are relevant in Latin
Legal Authorities
America and the Caribbean, where official corruption is
Congress has authorized several U.S. tools to combat
endemic in several countries.
corruption in law. For example, the Global Magnitsky
1) Grand Corruption. Political elites steal large sums of public
Human Rights Accountability Act of 2016 (P.L. 114-328)
funds for personal use or exploit political power for personal
empowers the President to identify foreign persons
advantage.
engaging in corruption or human rights abuses, sanction
them economically, and impose visa restrictions. The U.S.
2) Administrative Corruption. Entrusted power is
Northern Triangle Enhanced Engagement Act (Division
manipulated for private gain, frequently by low- to mid-level
FF of P.L. 116-260) requires the President to identify and
government officials, by skirting rules or extorting citizens in
report to Congress individuals who have engaged in
exchange for public services.
significant corruption or undermined democratic processes
3) Kleptocracy. Government officials wield their political
or institutions in El Salvador, Guatemala, and Honduras and
power to appropriate the nation’s wealth.
to impose visa sanctions against them (Section 353 Corrupt
4) State Capture. Private entities and actors improperly
and Undemocratic Actors Report, also known as the Engel
influence national decisionmaking for their own benefit.
list).
5) Strategic Corruption. A government weaponizes or uses
A pending bill, the Combating Global Corruption Act,
its corrupt practices as a tool of foreign policy.
(H.R. 4322/S. 14), would create an annual State Department
Source: Definitions drawn from https://www.whitehouse.gov/wp-
ranking of countries by level of corruption. Sharing the
content/uploads/2021/12/United-States-Strategy-on-Countering-
aims of the Global Magnitsky Act and other deterrence
Corruption.pdf.
tools, this legislation is intended to disrupt and deter those

who would thwart democratic values and the rule of law.
U.S. Agency Efforts and Interagency Coordination
Congressional Considerations
Anti-corruption efforts typically face obstacles because they
Several U.S. agencies implement foreign assistance
may conflict with local political circumstances, may lack
programs focused on combatting corruption in LAC. For
sustained political backing, or may be inadequately tailored
instance, the U.S. Department of Justice (DOJ) conducts
to meet evolving circumstances. In the polarized political
some anti-corruption assistance programs aimed at
environments common in many parts of LAC, corruption
combatting transnational crime and terrorism. These efforts
investigations often become politicized and focus on
are funded by pass-through interagency agreements,
particularly with the State Department’s Interna
targeting political opponents, thus undermining the
tional
legitimacy of anti-corruption initiatives.
Narcotics Control and Law Enforcement Affairs Bureau
(using International Narcotics Control and Law
As interest in countering corruption internationally
Enforcement account resources). DOJ carries out these
continues to grow, Congress may conduct oversight of
programs primarily through its International Criminal
existing efforts and may consider new approaches. In
Investigative Training Assistance Program and the Office
reviewing anti-corruption strategies in legislation and
of Overseas Prosecutorial Development Assistance and
appropriations for LAC, Members may consider the
Training, both of which seek to build the capacity of
following questions:
foreign criminal justice entities to address corruption. U.S.
 Does a program fit the local conditions? Is there a gap
Agency for International Development programs focus on
between the proposed approach and local political and
building the capacity and commitment of civil society
economic realities?
groups and the private sector to provide oversight of
 Is there enduring and sufficient political will? Have
government agencies and to reduce corruption’s detrimental
programs with U.S. government support been well
impact on development. According to some analysts, some
integrated to work in tandem with other U.S.-funded
U.S. agencies collaborate and leverage comparative
efforts or civil society initiatives?
strengths to achieve complementary programming. Other

analysts warn that certain U.S. efforts can be duplicative
Have designers proposed metrics for the anti-corruption
and may produce contradictory outcomes.
tool or program to assess progress, stimulate
New U.S. Strategy
adjustments, and measure success?
 Have U.S. anti-corruption measures accounted for
The Biden Administration has made fighting corruption at
potential second-order effects, such as sanction regimes
home and abroad a top security priority. In December 2021,
potentially sparking illicit markets or new corruption?
the Administration released the U.S. Strategy on
Countering Corruption. The strategy aims to revitalize U.S.
June S. Beittel, Analyst in Latin American Affairs
anti-corruption efforts; evaluate existing efforts at fighting
Rachel L. Martin, Research Assistant
abuses and ensure they are coordinated across agencies; and
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Anti-corruption Efforts in Latin America and the Caribbean

IF12031

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