Latin America's Fight against Corruption: The End of Impunity

Abstract

Since the adoption of the Anti-Corruption Action Plan in 2010, the G20 has tried to promote market integrity and a clean business environment. Under the German G20 presidency, a working group co-chaired by Germany and Brazil has been seeking to advance this agenda. Since the so-called Odebrecht scandal - a large-scale corruption scheme that entangled most Latin American countries – the relevance of the topic has become widely recognised. Latin America was a frontrunner in intergovernmental anti-corruption treaties. Nevertheless, corruption is still deeply engrained and widespread in Latin America. Governments from various ideological backgrounds are currently under scrutiny due to corruption charges. Corruption in Latin America has not increased in recent years, but the exposure and social disapprobation of corruption has. In many Latin American countries democratisation has failed to cope with organised crime and social marginalisation – both of which are important drivers of violence and corruption. The exceptional cases of Chile, Uruguay, and Costa Rica provide evidence of the key role elites, state institutions, and democratic accountability play in coping with these problems. Direct consequences of anti-corruption campaigns and scandals may be ambiva­lent as they delegitimise institutions and the political system. This might open the floor to outsiders and populists, resulting in deeper institutional crises. While international initiatives against corruption such as the G20 Anti-Corruption Agenda can serve as important reference points, strengthening the independence of judicial systems and civil society organisations in monitoring corruption and enforcing existing laws should be a priority. The subordination of economic and political elites to the rule of law is a must for anti-corruption policies as well as for sustainable development.