[Congressional Record Volume 146, Number 78 (Tuesday, June 20, 2000)]
[Extensions of Remarks]
[Page E1060]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF THE INTERNATIONAL ANTI-CORRUPTION AND GOOD GOVERNANCE 
                              ACT OF 2000

                                 ______
                                 

                           HON. SAM GEJDENSON

                             of connecticut

                    in the house of representatives

                         Tuesday, June 20, 2000

  Mr. GEJDENSON. Mr. Speaker, I rise in support of the International 
Anti-Corruption and Good Governance Act of 2000, legislation I 
introduced today to make combating corruption a key principle of U.S. 
development assistance.
  This bill will help to accomplish two objectives of pivotal 
importance to the United States. By making anti-corruption procedures a 
key principle of development assistance, it will push developing 
countries further along the path to democracy and the establishment of 
a strong civil society. Moreover, by helping these countries root out 
corruption, bribery and unethical business practices, we can help 
create a level playing field for U.S. companies doing business abroad.
  According to officials at the U.S. Department of Commerce, during the 
past five years, U.S. firms lost nearly $25 billion dollars-worth of 
contracts to foreign competitors offering bribes.
  Bribery impedes trade and hurts our economic interests by providing 
an unfair advantage to those countries which tolerate bribery of 
foreign officials. By making anti-corruption procedures a key component 
of our foreign aid programs, this bill will help those countries to set 
up more transparent business practices, such as modem commercial codes 
and intellectual property rights, which are vital to enhancing economic 
growth and decreasing corruption at all levels of society.
  My bill requires U.S. foreign assistance to be used to fight 
corruption at all levels of government and in the private sector in 
countries that have persistent problems with corruption--particularly 
where the United States has a significant economic interest.
  The United States has a long history of leadership on fighting 
corruption. We were the first to criminalize international bribery 
through the enactment of the Foreign Corrupt Practices Act of 1977. 
Moreover, United States leadership was instrumental in the passage of 
the OECD Convention on Combating Bribery of Foreign Public Officials in 
International Business Transacations. Enactment of this bill would be a 
logical next step.
  Corruption is antithetical to democracy. It chips away at the 
public's trust in government, while stifling economic growth and 
deterring foreign economic investment. In addition, corruption poses a 
major threat to development. It undermines democracy and good 
governance, reduces accountability and representation, and inhibits the 
development of a strong civil society.
  This bill takes a comprehensive approach to combating corruption and 
promoting good governance. By outlining a series of initiatives to be 
carried out by both USAID and the Treasury Department, the legislation 
addresses the political, social and economic aspects of corruption.
  As the largest trader in the global economy, it in the United States' 
national interest to fight corruption and promote transparency and good 
governance. Not only does it help to promote economic growth and 
strengthen democracy, but it helps to create a level playing field for 
U.S. companies that do business overseas.

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