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Dividing the Threat Multiplier: An Argument for Effective International Prosecution Against Grand Corruption and Kleptocratic Regimes – Maren Moon

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The release of the Panama Papers by the International Consortium of Investigative Journalists (ICIJ) has fuelled spectacular revelations regarding the scale of grand corruption and the wider system which enables it (ICIJ, 2016: np).  The scandal is exposing involvement by the very people and institutions who should feel morally and legally compelled to act with the highest integrity but who instead participate in a system all too frequently perpetrating wholesale crime, undue privilege, and the global erosion of security.  (Wolf, 2014: 3). They are doing so with impunity, and they are doing so while the world’s watchdogs cannot help but possess full knowledge that ‘the link between grand corruption and mass human rights violations is undeniable’ (Freedom House, 2014, and also Woodrow Wilson Center, 2016: np., and Transparency International: 2008, ).

No less than heads of states and global financial institutions linked to London, New York and Switzerland have now been connected to an enormous shadow economy responsible for: hiding assets; exercising bribery; facilitating tax evasion; practicing financial fraud; enabling drug trafficking; and participating in sexploitation. (See ICIJ, 2016 and Huffington Post a, 2016, Huffington Post b, 2016: np, and BBCb, 2016: np ). And no fewer than 11 million documents have laid bare the global elite’s participation in a system purposefully rigged to increase the gap between the absurdly wealthy and the tragically poor.  The international community would do well to note too that this is a system which facilitates crime in desperate and conflict-vulnerable settings while arming the insurgents and terrorists who operate from within such settings (Patrick, 2009 and Napoleoni, 2003). We should also recall the system intentionally erodes democratic principles of transparency, fair taxation, the right to peaceful protest, and the exercise of free speech (Woodrow Wilson Center, 2016: np and Wolf, 2014: 5-8).  In short, this is a system wherein leaders and criminals alike actively undermines everything to which the international community aspires, and for which it ultimately endeavours; sometimes selflessly and in conditions of great hardship.

It should not go unrecognised that the responses of those who have been unveiled as both witting and unwitting participants in the darker aspects of this economy, all too consistently reiterate a mantra which should give each of us a moment’s pause for reflection – that lawyers and financial experts alike still possess the legal means of perpetrating unfair, corrupt, and increasingly unfair and corrupting practices. Vested interests in lofty positions have suggested big businesses, and their high-flying personnel, need to work in the shadow economy even when it lowers opportunities for smaller businesses and honest entrepreneurs.  They argue further that legislation against bribery ‘puts British companies at a competitive disadvantage’ (Barrington, 2016: 4). And yet still too, others have intoned that society needs to tacitly accommodate unethical practices in the financial sector on the grounds that businesses in their countries are too big to fail, or too important to risk having relocate to another country. But in making these accommodations we will be enabling the capture of entire governments by organisations whose interests do not include the common citizens who eke by and sustain the infrastructure enjoyed by those who have rigged the system against them (Johnson, 2009: np).  Such accommodation could only serve to entrench profit for the few at the cost of the many. We are, in effect, now experiencing parallel attacks on democracy by the licit and illicit economies alike – both of whom are seemingly melding into a deeper, more committed relationship in an increasingly shady capacity and whose political-economy will forever thwart the international community’s efforts in bringing peace and security.

Those who evade tax legally are allowed to escape criminality by conveniently structured legal technicalities. This phenomena is relatively easy to rectify. But the Big King Kleptocrats who knowingly act outside the law, do so understanding that successful prosecution against their acts is nearly unheard of. History and statistics remain firmly on their side. This is occurring regardless of corruption’s increasingly evident role in destabilising entire continents such as Africa, the Middle East, Asia, and Central and South America (Carnegie, 2015).  These actors smile comfortably while insinuating that exposure of their misdeeds might expose a larger, darker reality in which too many purportedly clean-skinned actors may also be complicit.

And while they may not be kind, they most certainly are proving wise.

Indeed, these same kleptocrats, and their advisors, will have followed closely the freedom and riches once more enjoyed by Egypt’s Hosni Mubarak who has now escaped charges of corruption and murder on a mere technicality (Reuters, 2015: np). Mubarak was a kleptocratic despot whose legacy includes death, blood, fear, and a deeply troubled country. He did not operate in a vacuum, and he was aided by the most powerful regimes in the world. But that does not excuse the outcome – nor does it justify the continuance of such behaviour. Those choosing to play in the dirty sandbox of blood and money in today’s shadow economy will have either dismissed the importance of the Arab Spring’s impact on security and human rights or cynically regarded the situation as yet another opportunity from which to leverage additional millions.  I argue that humanity can no longer afford such cynicism.

I further assert these same actors will have understood President Goodluck Jonathan’s dismissal of his bank governor following the well-intended public servant’s disclosure to the ‘Nigerian Senate that the treasury was missing billions of dollars in expected oil revenue’ (Wolf, 2014: 5). Indeed, Jonathan and his cronies seemed content to turn a blind eye to the networks which channelled money and arms to Boko Haram while leaving security forces ill equipped to quell an uprising which has now left more than 10,000 civilians and security personnel dead at the hands of Islamist savagery (Foreign Policy, 2015: np).

The kleptocrats will have further monitored the toppling of corrupt regimes in Tunisia and the Ukraine and reacted like narcissistic sociopaths unable to emotionally register the gravity of their actions, while concurrently making plans to fly to safety while maintaining access to their ill-gotten gains if the same danger knocks on their door.

The impunity enjoyed by this cohort, and structured into our globalised economy, has paved the way for much of the harm we see unfolding on the world’s stage. It has also provided resonant and compelling reasons from which the so called Islamic State, Boko Haram, and the Taliban find a seemingly endless supply of recruits (Chayes, 2007: 22, and Woodrow Wilson Center, 2016: np, and Schirch as cited in Mertus and Helsing, 2009: 68).

Whether knowingly or not, every last player in the shadow economy has contributed to an encroaching threat against humanity and which serves as nothing short of a security threat multiplier. It is of epic and global proportions.

The 2014 Ebola crisis in West Africa provides an immediate example of how easily corruption might impact security on a global scale. UN donor contributions topping $5.2bn were dispersed to Sierra Leone, Liberia and Guinea.  Almost all of it vanished, and only a fraction of the disbursement was ever audited. ‘In all three countries, no individual has been tried, much less convicted, for their role in the mismanagement of money meant to save the lives of the dying’ (Al Jazeera, 2016: np.).  These funds were also intended to contain the outbreak and prevent its spread.  The UN’s Global Ebola Response data refers to the outbreak’s nature as having been of ‘widespread and intense transmission’ (UN, 2014: np). But to date, the myriad pages and resources on their website speak only of a level of need and the current status of the situation.  Their silence of the flagrant misappropriation of funds perpetuates impunity.  And such complicit behaviour could very well facilitate a new pandemic of Ebola or some other virus, which experts warn could be incredibly difficult, if not impossible, to halt if not contained early, and with the utmost care; care which could never result in the face of another round of missing but badly needs funds (Oxford Martin School, 2012: np).

Grand Corruption further impacts security by destabilising regions in concussive shock waves. As migrants flee corrupt regimes and insurgencies (again, simultaneously fostered by the shadow economy), we see communities decimated, resentments grow, borders close, and trust diminish. (BBCa 2015: np,). Actions originating thousands of miles away from Europe’s shores are now threatening the cohesiveness of European states and the long architected interdependence of the EU.   The Schengen Agreement is further threatened as once ceded sovereignty is being repossessed by politicians seeking to erect borders and control the influx of desperate people fleeing the regimes which grand corruption has enabled.

Finally, kleptocracy feeds the thickening of the crime-conflict nexus as human traffickers, arms dealers, and smugglers share mutually beneficial relationships with terrorists, insurgents and the ruling elite. The nexus will continue to thicken so long as the chaotic conditions and lack of governance resulting from unabated kleptocracy ensures the conditions favourable to its growth.  (see Patrick, 2009,  and Lacher, 2012, and McMullin, 2009, and Jesperson, 2015 and Sloan and Cockayne, 2011).

And it is for these reasons, and so many more, that we must strive to end impunity for grand corruption – and the shadow economy in which it thrives.   Such a task will require concerted, relentless multilateral efforts and incredible political will.  But it can, and must be done.

We can begin by seizing opportunity from the momentum gathering in the wake of the Panama Papers and the associated Unaoil scandals in current headlines.  We can further reach out across the international community and form inter-organisational working teams to apply pressure on host-countries, the Bretton Woods institutions, and home governments.   We can institute training programs which dispel the activities which remain shrouded in mystery but whose reality can be unpacked in simple terms.  But most of all, we must challenge the sovereignty of those countries who refuse to participate in fair trade and good governance – and we must have an international court with both the will and capacity to challenge the problem.  And that court must somehow operate separately from the arbitrary and political interests of the United Nations Permanent 5.

But it has to start. Impunity has to end. And accountability must follow. And never has there been a more pressing time.

Post-script

As a post-script to my previous position piece, I would like to gently assert that the International Community has understandably tolerated grand corruption in the theatres of peacekeeping and peacebuilding operations. The conditions in many of these theatres have necessitated that our precious resources be used first to protect lives and second to institute the ground-level security needed to maintain sufficient equilibrium from which to begin the long, hard institutionalisation of security sector reform, transitional justice, and micro-development projects.  But this too provides another reason why the solution to grand corruption requires an international effort outside the influence of the P5 (whose own members might be guilty of grand corruption or geopolitics).  We must seek a solution which can pre-empt the looting of banks and act independently of outside political agendas which might situate a vulnerable country between winning and losing scenarios as powerful countries battle for control by proxy. We need a solution which sends a clear signal to corrupt elites across the entire world, and not simply those situated in areas of conflict, that corruption will no longer be tolerated, nor paid for by blood of innocent people.  But we, the donor countries, must see to our own houses first.  We must ensure our hands are clean and that any authority we exercise is comprised of substance and never hollow in its nature. We must lead from the front, and from genuine experience.  But we simply cannot afford to turn away from this issue – at home or abroad.  People are dying by guns and by starvation; and they are dying by torture when taking action to stop the atrocity at hand while having inadequate support behind and beside them.  We must be that support.

References

Al Jazeera Media (2016) The plunder of west Africa Ebola funds. Available at: http://www.aljazeera.com/indepth/opinion/2016/01/plunder-west-africa-ebola-funds-160125140155872.html (Accessed: 6 April 2016).

BBC (2016) Migration and citizenship, start the week – BBC radio 4. Available at: http://www.bbc.co.uk/programmes/b06ybg7h (Accessed: 3 April 2016).

BBC (2016) Panama papers: What the documents reveal. Available at: http://www.bbc.com/news/world-35956055 (Accessed: 6 April 2016).

Barrington, R. (2016) ‘Spot the Difference: Corruption Research, Academies and NGOs’, British Academy: British Academy. pp. 1–7.

Carnegie Endowment for International Peace (2014) Corruption: The Unrecognized Threat to International Security. Available at: http://carnegieendowment.org/files/corruption_and_security.pdf (Accessed: 14 March 2015).

Chayes, S. (2007) ‘Days of Lies and Roses: Selling Out Afghanistan’, Boston Review, , pp. 21–23.

Foreign Policy (2015) In Nigeria, $2 Billion in Stolen Funds is Just a Drop in the Corruption Bucket. Available at: http://foreignpolicy.com/2015/11/18/in-nigeria-2-billion-in-stolen-funds-is-just-a-drop-in-the-corruption-bucket/ (Accessed: 20 November 2015).

Freedom House (2014) ‘Combating Impunity: Transnational Justice and Anti-Corruption’, Washington, DC: Freedom House. pp. 1–10.

Huffington Post (2016) Big Banks Aided Firm at Center of International Bribery Scandal. Available at: http://www.huffingtonpost.com/entry/unaoil-citibank-hsbc_us_56feba02e4b0daf53aefa1da (Accessed: 6 April 2016).

Huffington Post (2016) There’s A huge new corporate corruption scandal. Here’s why everyone should care. Available at: http://www.huffingtonpost.com/entry/unaoil-bribery-scandal-corruption_us_56fa2b06e4b014d3fe2408b9 (Accessed: 6 April 2016).

ICIJ (2016) Giant leak of offshore financial records exposes global array of crime and corruption. Available at: https://panamapapers.icij.org/20160403-panama-papers-global-overview.html (Accessed: 6 April 2016).

ICIJ (2016) The Panama papers. Available at: https://panamapapers.icij.org/ (Accessed: 6 April 2016).

Jesperson, S. (2015) ‘Development Engagement with Organized Crime: a Necessary Shift or Further Securitisation?’, Conflict, Security, & Development, 15(1), pp. 23–50.

Johnson, S. (2009) The Quiet Coup. Available at: http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/ (Accessed: 6 April 2016).

Lacher, W. (2012) Organized Crime and Conflict in the Sahel-Sahara Region.

McMullin, J. (2009) ‘Organised Criminal Groups and Conflicts: The Nature and Consequences of Interdependence’, Civil Wars, 11(1), pp. 75–102.

Napoleoni, L. (2003) Modern Jihad: Tracing the Dollars Behind the Terror Networks. London: Pluto Press.

Oxfam International (2015) Richest 1% will own more than all the rest by 2016. Available at: https://www.oxfam.org/en/pressroom/pressreleases/2015-01-19/richest-1-will-own-more-all-rest-2016 (Accessed: 6 April 2016).

Oxford Martin School (2012) Pandemics – can we eliminate major worldwide epidemics? | videos. Available at: http://www.oxfordmartin.ox.ac.uk/videos/view/208 (Accessed: 4 April 2016).

Patrick, S. (2011) Weak Links: Fragile States, Global Threats, and International Security. Oxford: Oxford University Press.

Reuters (2015) Egypt’s high court overturns last conviction against Mubarak. Available at: http://www.reuters.com/article/us-egypt-mubarak-idUSKBN0KM0O620150113 (Accessed: 6 April 2016).

Schirch, L. (2006) Human Rights & Conflict: Exploring the Links between Rights, Law, and Peacebuilding. Edited by Julie A Mertus and Jeffrey W Helsing. Washington, DC: United States Institute of Peace.

Sloan, B. and Cockayne, J. (2011) ‘Terrorism, Crime, and Conflict: Exploiting the Differences Among Transnational Threats?’, Policy Brief, , pp. 1–11.

Transparency International (2008) ‘Human Rights and Corruption’, Working Paper, 05, pp. 1–6.

United Nations (2014) Global Ebola crisis response | data. Available at: http://www.un.org/ebolaresponse/data.shtml (Accessed: 6 April 2016).

Wolf, M.L. (2014) ‘The Case for an International Anti-Corruption Court’, Governance Studies at Brookings, July, pp. 1–15.

Woodrow Wilson Center (2016) Combatting grand corruption internationally. Available at: https://www.youtube.com/watch?v=GN6HDEgiSc8 (Accessed: 6 April 2016).

Afghanistan’s Endemic Corruption – Iain Blackwood

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The author has elected out of all the subject matter taught on the Security, Conflict and International Development course to discuss ‘corruption’. Although the subject matter is discussed, the author has first hand experience of corruption, which other individuals who work in conflict zones will undoubtedly have experience of and will have to contend with.  As the author has been working and living in Afghanistan for a number of years and has experienced corruption in his daily business dealings and within his own organisation, which diverted funds allocated in assisting Afghanistans humanitarian needs.  Furthermore, corruption within Afghanistan is not only a problem but is happening on endemic proportions and is not just limited to the capital Kabul, but reaches every element of Afghan society.

To give an indication of how endemic corruption is within Afghanistan, the 2015 Asia foundation report, reported that the local Afghan population sees corruption as inescapable, which they encounter daily, and 89.9 percent of Afghans reporting corruption as thee foremost problem in their day-to-day lives and 91.2 percent, when dealing with varying levels of the Afghan government (Asia Foundation, 2015).  These high levels of corruption in the daily lives of the Afghan peoples can be seen as further exacerbating an already troubled emerging fragile state and the newly formed Afghan government it appears has done little in the way of countering the endemic proportions of corruption within Afghanistan.

Corruption in Afghanistan can be all encompassing and encountered in various forms from the man in the street buying bread, to prices being inflated to include extra charges to fuel prices, or government officials wanting their share of the price of registering an Armoured vehicle. Although some of the added fees may be insignificant in size and terms of profit margins, this is corruption and certainly, the sums being asked by Government officials are large and often blatant corruption.  This occurs to local Afghans and International actors and Non-Governmental Organisations (NGOs), alike.  Higher costs are incurred for International organisations as well as local Afghans but Internationals are perceived as being rich and capable of handing over ‘Baksheesh’ a bribe; to officials in order bypass the myriad rules and regulations, get paper work signed and officiated.

According to Transparency International (2015), Afghanistan is ranked 166 out of 168 and third worst country in the world for corruption. Therefore, corruption may emerge from necessity because of low wages or from the lack of education or just a way of Afghan life.  However, corruption is a way of life in Afghanistan and as previously mentioned encountered daily.  Although there have only been a handful of high profile prosecutions over the past decade these have principally involved money laundering through the  ‘hawala’ transfer system, which is an unofficial money system used to transfer proceeds both monetary and physical goods through normal merchant transactions to laundering the proceeds from Afghanistans pervasive opium industry (Ahmed, 2016).  Money laundering through the informal ‘hawala’ black market money transfer system is a major contributing factor in supporting criminality (Maimbo, 2003). This criminality within Afghanistan can further exacerbate an already fragile emerging failed state such as Afghanistan.  It is also known that criminal networks thrive in fragile and conflict states due to the disorganization of state infrastructures as well as other internal and external state dysfunction.  Still the Afghan government has done little prior to the election of Ashraf Ghani in cracking down and where clear cases of corruption have come to light, few cases have been investigated or prosecutions followed (FinTRACA, 2016). This is caused by a number of factors including complicit officials; weak financial polices, a weak government, which lacks both the expertise and will power to enforce its policies and follow through with its prosecution mechanisms Singh, (2015).

Additionally, according to Ashraf Ghani, criminal networks ‘often use formal government positions to promote criminal networks, as a result of which government offices degenerate into little more than a springboard for organized looting’, (Ghani and Lockhart, 2009: 80). To fight corruption it is necessary to initiate and populate educational elimination and reduction strategies together with new broad reaching law-enforcement measures, which would be considered a positive step, forward in fighting Afghanistan’s ongoing corruption and educating its population as to the harm corruption does. However in order to achieve its aims in crime reduction it also has to consider it conflict reduction programmes as crime and conflict go hand in hand in failed states. Although this is a tall order considering its curent unstable political climate and ongoing current counter insurgency (Banfield, 2014).

Postscript

Corruption is a human condition based on personal choice, coercion or group dynamics and has been recorded as far back as biblical times. Public officials have abused their offices for personal gain while populations have taken advantage by corrupting those holding power.  Corruption persists in countries that are susceptible to crime through weak and failed systems and ongoing conflicts where procedures and policies are lacking or do not exist.  It is therefore difficult to respond and prosecute offenders; this in part may be due to the fact that individuals lack the motivation to follow though investigations, or due to the Afghan judicial system having a entrenched corruption problem.

To counter corruption, anti-corruption measures must be embedded within institutions and organisations must be held accountable to higher offices. To do this simple crime reduction measures can be emplaced to deter individuals or groups of attempting to commit corruption, through such measures of having monitoring systems in place, greater transparency which may deter corruption, more surveillance and internal checks and greater prosecution and investigative checks.

Yet, these measures can also be implemented and adjusted to fit the means and the contextual factors involved. For example, greater monitoring, transparency, and internal checks could lead to those individuals in offices of importance to resist such measures for fear of revealing further malpractices of office or position.  Additionally, only when normal anti-corruption practices are in place and individuals are willing to work within these practices can crime reduction measures and campaigns be successful and ultimately eradicate the problem, however in Afghanistans case that may take some time yet due to the pervasiveness of it.

References

Ahmed, J. (2016) ‘Dirty Money in Afghanistan: How Kabul is Cleaning up the Illicit Economy’, Foreign Affairs, avaialable at https://www.foreignaffairs.com/articles/afghanistan/2016-09-07/dirty-money-afghanistan, (accessed 24th September 2016).

Asia Foundation (2015) ‘Afghanistan in 2015: A Survey of the Afghan People’, San Francisco: Asia Foundation.

FinTRACA (2016) Financial Transactions and Reports Analysis Center of Afghanistan (FinTRACA): Home Page, avaialable at http://www.fintraca.gov.af, (accessed 24th September 2016).

Ghani, A. and Lockhart, C. (2009) Fixing Failed States: A Framework for Rebuilding a Fractured World, Oxford: Oxford University Press.

High Office for Oversight and Anti-corruption (2016) Anti-Corruption Laws & Strategy, available at http://anti-corruption.gov.af/en/page/8477, (accessed 24th September 2016).

Maimbo, S. M. (2003) ‘The Money Exchange Dealers of Kabul: A Study of the Hawala System in Afghanistan’, World Bank Working Paper Series; No: 13, Washington, DC: World Bank, available at http://documents.worldbank.org/curated/en/335241467990983523/The-money-exchange-dealers-of-Kabul-a-study-of-the-Hawala-system-in-Afghanistan, (accessed 24th September 2016).

Patrick, S. (2011) Weak Links: Fragile States, Global Threats, and International Security, New York: Oxford University Press.

Singh, D. (2015) ‘Explaining varieties of corruption in the Afghan Justice Sector’, Journal of Intervention and Statebuilding, 9:(2): 231-255.

Transparency International (2015) Corruption Perception Index 2015, avaialable at http://www.transparency.org/cpi2015#results-table, (accessed 24th September 2016).

Dividing the Threat Multiplier: An Argument for Effective International Prosecution Against Grand Corruption and Kleptocratic Regimes – Maren Moon

Leave a reply

The release of the Panama Papers by the International Consortium of Investigative Journalists (ICIJ) has fuelled spectacular revelations regarding the scale of grand corruption and the wider system which enables it (ICIJ, 2016: np).  The scandal is exposing involvement by the very people and institutions who should feel morally and legally compelled to act with the highest integrity but who instead participate in a system all too frequently perpetrating wholesale crime, undue privilege, and the global erosion of security.  (Wolf, 2014: 3). They are doing so with impunity, and they are doing so while the world’s watchdogs cannot help but possess full knowledge that ‘the link between grand corruption and mass human rights violations is undeniable’ (Freedom House, 2014, and also Woodrow Wilson Center, 2016: np., and Transparency International: 2008, ).

No less than heads of states and global financial institutions linked to London, New York and Switzerland have now been connected to an enormous shadow economy responsible for: hiding assets; exercising bribery; facilitating tax evasion; practicing financial fraud; enabling drug trafficking; and participating in sexploitation. (See ICIJ, 2016 and Huffington Post a, 2016, Huffington Post b, 2016: np, and BBCb, 2016: np ). And no fewer than 11 million documents have laid bare the global elite’s participation in a system purposefully rigged to increase the gap between the absurdly wealthy and the tragically poor.  The international community would do well to note too that this is a system which facilitates crime in desperate and conflict-vulnerable settings while arming the insurgents and terrorists who operate from within such settings (Patrick, 2009 and Napoleoni, 2003). We should also recall the system intentionally erodes democratic principles of transparency, fair taxation, the right to peaceful protest, and the exercise of free speech (Woodrow Wilson Center, 2016: np and Wolf, 2014: 5-8).  In short, this is a system wherein leaders and criminals alike actively undermines everything to which the international community aspires, and for which it ultimately endeavours; sometimes selflessly and in conditions of great hardship.

It should not go unrecognised that the responses of those who have been unveiled as both witting and unwitting participants in the darker aspects of this economy, all too consistently reiterate a mantra which should give each of us a moment’s pause for reflection – that lawyers and financial experts alike still possess the legal means of perpetrating unfair, corrupt, and increasingly unfair and corrupting practices. Vested interests in lofty positions have suggested big businesses, and their high-flying personnel, need to work in the shadow economy even when it lowers opportunities for smaller businesses and honest entrepreneurs.  They argue further that legislation against bribery ‘puts British companies at a competitive disadvantage’ (Barrington, 2016: 4). And yet still too, others have intoned that society needs to tacitly accommodate unethical practices in the financial sector on the grounds that businesses in their countries are too big to fail, or too important to risk having relocate to another country. But in making these accommodations we will be enabling the capture of entire governments by organisations whose interests do not include the common citizens who eke by and sustain the infrastructure enjoyed by those who have rigged the system against them (Johnson, 2009: np).  Such accommodation could only serve to entrench profit for the few at the cost of the many. We are, in effect, now experiencing parallel attacks on democracy by the licit and illicit economies alike – both of whom are seemingly melding into a deeper, more committed relationship in an increasingly shady capacity and whose political-economy will forever thwart the international community’s efforts in bringing peace and security.

Those who evade tax legally are allowed to escape criminality by conveniently structured legal technicalities. This phenomena is relatively easy to rectify. But the Big King Kleptocrats who knowingly act outside the law, do so understanding that successful prosecution against their acts is nearly unheard of. History and statistics remain firmly on their side. This is occurring regardless of corruption’s increasingly evident role in destabilising entire continents such as Africa, the Middle East, Asia, and Central and South America (Carnegie, 2015).  These actors smile comfortably while insinuating that exposure of their misdeeds might expose a larger, darker reality in which too many purportedly clean-skinned actors may also be complicit.

And while they may not be kind, they most certainly are proving wise.

Indeed, these same kleptocrats, and their advisors, will have followed closely the freedom and riches once more enjoyed by Egypt’s Hosni Mubarak who has now escaped charges of corruption and murder on a mere technicality (Reuters, 2015: np). Mubarak was a kleptocratic despot whose legacy includes death, blood, fear, and a deeply troubled country. He did not operate in a vacuum, and he was aided by the most powerful regimes in the world. But that does not excuse the outcome – nor does it justify the continuance of such behaviour. Those choosing to play in the dirty sandbox of blood and money in today’s shadow economy will have either dismissed the importance of the Arab Spring’s impact on security and human rights or cynically regarded the situation as yet another opportunity from which to leverage additional millions.  I argue that humanity can no longer afford such cynicism.

I further assert these same actors will have understood President Goodluck Jonathan’s dismissal of his bank governor following the well-intended public servant’s disclosure to the ‘Nigerian Senate that the treasury was missing billions of dollars in expected oil revenue’ (Wolf, 2014: 5). Indeed, Jonathan and his cronies seemed content to turn a blind eye to the networks which channelled money and arms to Boko Haram while leaving security forces ill equipped to quell an uprising which has now left more than 10,000 civilians and security personnel dead at the hands of Islamist savagery (Foreign Policy, 2015: np).

The kleptocrats will have further monitored the toppling of corrupt regimes in Tunisia and the Ukraine and reacted like narcissistic sociopaths unable to emotionally register the gravity of their actions, while concurrently making plans to fly to safety while maintaining access to their ill-gotten gains if the same danger knocks on their door.

The impunity enjoyed by this cohort, and structured into our globalised economy, has paved the way for much of the harm we see unfolding on the world’s stage. It has also provided resonant and compelling reasons from which the so called Islamic State, Boko Haram, and the Taliban find a seemingly endless supply of recruits (Chayes, 2007: 22, and Woodrow Wilson Center, 2016: np, and Schirch as cited in Mertus and Helsing, 2009: 68).

Whether knowingly or not, every last player in the shadow economy has contributed to an encroaching threat against humanity and which serves as nothing short of a security threat multiplier. It is of epic and global proportions.

The 2014 Ebola crisis in West Africa provides an immediate example of how easily corruption might impact security on a global scale. UN donor contributions topping $5.2bn were dispersed to Sierra Leone, Liberia and Guinea.  Almost all of it vanished, and only a fraction of the disbursement was ever audited. ‘In all three countries, no individual has been tried, much less convicted, for their role in the mismanagement of money meant to save the lives of the dying’ (Al Jazeera, 2016: np.).  These funds were also intended to contain the outbreak and prevent its spread.  The UN’s Global Ebola Response data refers to the outbreak’s nature as having been of ‘widespread and intense transmission’ (UN, 2014: np). But to date, the myriad pages and resources on their website speak only of a level of need and the current status of the situation.  Their silence of the flagrant misappropriation of funds perpetuates impunity.  And such complicit behaviour could very well facilitate a new pandemic of Ebola or some other virus, which experts warn could be incredibly difficult, if not impossible, to halt if not contained early, and with the utmost care; care which could never result in the face of another round of missing but badly needs funds (Oxford Martin School, 2012: np).

Grand Corruption further impacts security by destabilising regions in concussive shock waves. As migrants flee corrupt regimes and insurgencies (again, simultaneously fostered by the shadow economy), we see communities decimated, resentments grow, borders close, and trust diminish. (BBCa 2015: np,). Actions originating thousands of miles away from Europe’s shores are now threatening the cohesiveness of European states and the long architected interdependence of the EU.   The Schengen Agreement is further threatened as once ceded sovereignty is being repossessed by politicians seeking to erect borders and control the influx of desperate people fleeing the regimes which grand corruption has enabled.

Finally, kleptocracy feeds the thickening of the crime-conflict nexus as human traffickers, arms dealers, and smugglers share mutually beneficial relationships with terrorists, insurgents and the ruling elite. The nexus will continue to thicken so long as the chaotic conditions and lack of governance resulting from unabated kleptocracy ensures the conditions favourable to its growth.  (see Patrick, 2009,  and Lacher, 2012, and McMullin, 2009, and Jesperson, 2015 and Sloan and Cockayne, 2011).

And it is for these reasons, and so many more, that we must strive to end impunity for grand corruption – and the shadow economy in which it thrives.   Such a task will require concerted, relentless multilateral efforts and incredible political will.  But it can, and must be done.

We can begin by seizing opportunity from the momentum gathering in the wake of the Panama Papers and the associated Unaoil scandals in current headlines.  We can further reach out across the international community and form inter-organisational working teams to apply pressure on host-countries, the Bretton Woods institutions, and home governments.   We can institute training programs which dispel the activities which remain shrouded in mystery but whose reality can be unpacked in simple terms.  But most of all, we must challenge the sovereignty of those countries who refuse to participate in fair trade and good governance – and we must have an international court with both the will and capacity to challenge the problem.  And that court must somehow operate separately from the arbitrary and political interests of the United Nations Permanent 5.

But it has to start. Impunity has to end. And accountability must follow. And never has there been a more pressing time.

Postscript

As a post-script to my previous position piece, I would like to gently assert that the International Community has understandably tolerated grand corruption in the theatres of peacekeeping and peacebuilding operations. The conditions in many of these theatres have necessitated that our precious resources be used first to protect lives and second to institute the ground-level security needed to maintain sufficient equilibrium from which to begin the long, hard institutionalisation of security sector reform, transitional justice, and micro-development projects.  But this too provides another reason why the solution to grand corruption requires an international effort outside the influence of the P5 (whose own members might be guilty of grand corruption or geopolitics).  We must seek a solution which can pre-empt the looting of banks and act independently of outside political agendas which might situate a vulnerable country between winning and losing scenarios as powerful countries battle for control by proxy. We need a solution which sends a clear signal to corrupt elites across the entire world, and not simply those situated in areas of conflict, that corruption will no longer be tolerated, nor paid for by blood of innocent people.  But we, the donor countries, must see to our own houses first.  We must ensure our hands are clean and that any authority we exercise is comprised of substance and never hollow in its nature. We must lead from the front, and from genuine experience.  But we simply cannot afford to turn away from this issue – at home or abroad.  People are dying by guns and by starvation; and they are dying by torture when taking action to stop the atrocity at hand while having inadequate support behind and beside them.  We must be that support.

References

Al Jazeera Media (2016) The plunder of west Africa Ebola funds. Available at: http://www.aljazeera.com/indepth/opinion/2016/01/plunder-west-africa-ebola-funds-160125140155872.html (Accessed: 6 April 2016).

BBC (2016) Migration and citizenship, start the week – BBC radio 4. Available at: http://www.bbc.co.uk/programmes/b06ybg7h (Accessed: 3 April 2016).

BBC (2016) Panama papers: What the documents reveal. Available at: http://www.bbc.com/news/world-35956055 (Accessed: 6 April 2016).

Barrington, R. (2016) ‘Spot the Difference: Corruption Research, Academies and NGOs’, British Academy: British Academy. pp. 1–7.

Carnegie Endowment for International Peace (2014) Corruption: The Unrecognized Threat to International Security. Available at: http://carnegieendowment.org/files/corruption_and_security.pdf (Accessed: 14 March 2015).

Chayes, S. (2007) ‘Days of Lies and Roses: Selling Out Afghanistan’, Boston Review, , pp. 21–23.

Foreign Policy (2015) In Nigeria, $2 Billion in Stolen Funds is Just a Drop in the Corruption Bucket. Available at: http://foreignpolicy.com/2015/11/18/in-nigeria-2-billion-in-stolen-funds-is-just-a-drop-in-the-corruption-bucket/ (Accessed: 20 November 2015).

Freedom House (2014) ‘Combating Impunity: Transnational Justice and Anti-Corruption’, Washington, DC: Freedom House. pp. 1–10.

Huffington Post (2016) Big Banks Aided Firm at Center of International Bribery Scandal. Available at: http://www.huffingtonpost.com/entry/unaoil-citibank-hsbc_us_56feba02e4b0daf53aefa1da (Accessed: 6 April 2016).

Huffington Post (2016) There’s A huge new corporate corruption scandal. Here’s why everyone should care. Available at: http://www.huffingtonpost.com/entry/unaoil-bribery-scandal-corruption_us_56fa2b06e4b014d3fe2408b9 (Accessed: 6 April 2016).

ICIJ (2016) Giant leak of offshore financial records exposes global array of crime and corruption. Available at: https://panamapapers.icij.org/20160403-panama-papers-global-overview.html (Accessed: 6 April 2016).

ICIJ (2016) The Panama papers. Available at: https://panamapapers.icij.org/ (Accessed: 6 April 2016).

Jesperson, S. (2015) ‘Development Engagement with Organized Crime: a Necessary Shift or Further Securitisation?’, Conflict, Security, & Development, 15(1), pp. 23–50.

Johnson, S. (2009) The Quiet Coup. Available at: http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/ (Accessed: 6 April 2016).

Lacher, W. (2012) Organized Crime and Conflict in the Sahel-Sahara Region.

McMullin, J. (2009) ‘Organised Criminal Groups and Conflicts: The Nature and Consequences of Interdependence’, Civil Wars, 11(1), pp. 75–102.

Napoleoni, L. (2003) Modern Jihad: Tracing the Dollars Behind the Terror Networks. London: Pluto Press.

Oxfam International (2015) Richest 1% will own more than all the rest by 2016. Available at: https://www.oxfam.org/en/pressroom/pressreleases/2015-01-19/richest-1-will-own-more-all-rest-2016 (Accessed: 6 April 2016).

Oxford Martin School (2012) Pandemics – can we eliminate major worldwide epidemics? | videos. Available at: http://www.oxfordmartin.ox.ac.uk/videos/view/208 (Accessed: 4 April 2016).

Patrick, S. (2011) Weak Links: Fragile States, Global Threats, and International Security. Oxford: Oxford University Press.

Reuters (2015) Egypt’s high court overturns last conviction against Mubarak. Available at: http://www.reuters.com/article/us-egypt-mubarak-idUSKBN0KM0O620150113 (Accessed: 6 April 2016).

Schirch, L. (2006) Human Rights & Conflict: Exploring the Links between Rights, Law, and Peacebuilding. Edited by Julie A Mertus and Jeffrey W Helsing. Washington, DC: United States Institute of Peace.

Sloan, B. and Cockayne, J. (2011) ‘Terrorism, Crime, and Conflict: Exploiting the Differences Among Transnational Threats?’, Policy Brief, , pp. 1–11.

Transparency International (2008) ‘Human Rights and Corruption’, Working Paper, 05, pp. 1–6.

United Nations (2014) Global Ebola crisis response | data. Available at: http://www.un.org/ebolaresponse/data.shtml (Accessed: 6 April 2016).

Wolf, M.L. (2014) ‘The Case for an International Anti-Corruption Court’, Governance Studies at Brookings, July, pp. 1–15.

Woodrow Wilson Center (2016) Combatting grand corruption internationally. Available at: https://www.youtube.com/watch?v=GN6HDEgiSc8 (Accessed: 6 April 2016).

Corruption – Gregory Pye

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Reflecting on the course content carefully, the author has selected corruption as a topic for further discussion. Although included in course content, it is the view of the author that the subject does not have the degree of prominence necessary, to reflect the true reality and importance of corruptive practices, with which individuals working and living in post conflict situations, have to contend on a daily basis. Having lived and worked in Afghanistan for a number of years, the author is confronted by corruptive behaviours, at all levels of society, as an integral part of daily living and working experiences. Beyond the daily expectations of IED,s, Taliban attacks, suicide bombers and hashish fuelled hostility, the single foremost element which generates antagonism, frustration and personal conflict amongst international workers, is the endemic corruption, which prevails across the country. Corruption, by its very nature can be difficult to detect, as the serious Fraud Office indicates (Serious Fraud Office, 2015) the process involves two or more people entering into a secret agreement. Corruption watchdog of transparency International, indicate that corruption can involve abuse of power and resources at any level, within any sector, including businesses, public institutions and the government. (Transparency International global coalition against corruption, 2014). Corruption poses a fundamental threat by diverting public resources into private hands, away from those who should be benefiting directly in post conflict environments and continues to be a major obstacle to poverty alleviation, development and the building of security and justice. The range of activities can be considerable, encompassing as it does, accepting bribes, double dealing, under table transactions, diverting funds, manipulating officials and elections, money laundering and defrauding investors (Investopedia, 2015).

Achieving stability and security is a top priority for any intervention by the international community in an unstable post conflict country. Corruption is potentially fatal to long term stability and security and therefore countering it should be considered a pressing fundamental objective. It is difficult to read accounts about Afghanistan, without reference to multiple references to corruption. Afghanistan remains one of the worst performing countries in Transparency International’s Corruption Perception Index, ranking in the bottom four in 2014, along with Sudan, North Korea and Somalia (Transparency International, 2014). Scandals range from the Kabul Bank misappropriation of 93 million dollars and the suspension of IMF support, (BBC, 2014) to articles concerning provincial and district police chiefs buying their positions for$100,000. Incredulous as these reports may seem, the author can recount numerous occasions where he has had to fight against corruption at great personal threat to his life. For example in March 2014 the Medium Tax office (MTO) , based in Kabul, received $165,000 in ‘consultants tax’, this money never reached the company tax compliance account, it was taken by an MTO employee, who paid off the National Security Directorate (NDS), who then arrested the author and warned him that this matter should be ‘left alone’! A further reality is the need to carry $1000 in a money belt in order to deal with daily confrontations by police and officials. The levels of corruption in the country are extreme. According to a recent Asia Foundation Study, in 2014, 62.4% of Afghans reported that corruption was a major problem (Asia Foundation, 2014)

In 2012, the Afghan population considered corruption, together with insecurity and unemployment, to be one of the principal challenges facing their country, ahead of even poverty, security, external influence and government inefficiency (UNODC, 2012). Afghanistan has national anti corruption plans, laws, executive decrees and Government instruments all devoted to the fight against corruption, particular the High Office of Oversight and Anti Corruption (HOO), is mandated to co-ordinate and implement the national strategy. Inspite of the continuing efforts of this body, together with the Police, courts, Attorney General’s Office and a plethora of other related organisations, corruption continues to escalate unabated.

The causes are variable and complex. In an attempt to determine and analyse underlying processes, an insight into the historical, economy, social structure, cultural and religious practices of the Afghan Nation is elemental. Poverty, illiteracy, unemployment, weak government, drug trafficking and fear, are all instrumental factors in perpetuating an apparently intractable situation. As Lockheart, 2014, suggested, ‘The nexus of security, conflict and international development is new and a comparatively understudied area of work’ (Lockheart, 2014).

The same level of limited academic scrutiny can also be said to exist in the field of corruption research. Solutions are multifaceted, lengthy to implement and many lessons are yet to emerge from work being conducted in combating corruption in a number of post conflict countries, which may be significant in addressing the problems in Afghanistan. However, a positive approach and concerted actions, must be maintained, coupled with the encouragement of greater transparency, surveillance, detection, prosecution and eradication of corrupt norms, at all levels. The work of anti-corruption bodies requires enhanced governmental support, manpower and financial underpinning. This must be married to important associate long term strategies, such as employment creation, increase in public employee wages, reduction in poverty, eradication of drug trafficking, development of robust judicial systems and most crucially the regeneration of trust amongst the populous.

Postscript

Corruption persists in highly corrupt countries because it is not only difficult to monitor and therefore, prosecute, but also, when it is systematically pervasive, people may lack the incentives or initiative, to instigate counter measures. When considering corruption as a deep seated problem, it is perhaps important to examine two sets of dynamics which may be at interplay amongst those contemplating corruptive behaviour. Decisions to indulge in corruption are based on personal choice, coercion or group dynamics and at the same time, surveillance, monitoring, transparency and systems of prosecution, are all variables which may influence an individual’s calculations of whether to engage in corruption.

Anti-corruption activities need to be tailored to context and a thorough understanding of the dynamics of contextual factors is required. For example, greater transparency could be resisted by those in power for fear of exposure of wider pervasive practices.

Individual character, honesty and trust are vitally important, when considering suitability for key appointments. Individuals who are prepared to work within acceptable norms within culture, society, business, legal systems and government Clean up campaigns are only successful when there is a moral consensus behind them.

Measures which will undoubtedly assist in reducing corruption, should be actively engendered. Such measures include inclusiveness, increased dialogue between all stakeholders and continuing review and amendment of anti-corruption plans. Scrutiny should address roles, responsibilities, resourcing and effectiveness. Intractable problems such as corruption cannot always be eliminated completely but with commitment, dedication and resilience, it should be possible over time to contain the problem within acceptable limits.

References

BBC . (2011). Afghan row over failed bank threatens salaries. Available: http//www.bbc.co.uk/newa/world-south-east-asia-13847292). Last accessed 14th February 2015.

Lockheart, C. (2014). Building Security and Justice in Post Conflict Environmen. : A Reader.Proceedings of 2014 Security, Conflict and International Development (SCID) Symposium.. 1 (14), 4-8.

Serious Fraud Office . (2015). Bribery Corruption. Available: http://www.sfo.gov.uk>bribery & corruption. Last accessed 22nd March 2015.

Transparency International. (2014). Transparency International global coalition against corruption. 2014).. Available: http://cpi.trancparency.org/cpi2013/results/). Last accessed 14th February 2015.

UNODC. (2012). Afghanistan: Recent Patterns and Trends. Available: http://anti-corruption.gov.af/en/page/1783/8477.2015). In. Last accessed 15th February 2015.

Stabilisation and Governance, Corruption & State Fragility

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I have the pleasure of informing you of two high-profile short courses that will be offered by the Department of Criminology from September 2015. The development of the Professional Development Programmes in Stabilisation and Governance, Corruption and State Fragility is being led by two members of the SCID Panel of Experts – Malcolm Russell and Keith Sargent, respectively – and will be delivered by them at a one-week residential course in Leicester alongside other leading international experts in their respective fields.

The courses are aligned to the SCID programme and will provide participants with the opportunity to secure credits to pursue the SCID programme should they wish. The Governance, Corruption and State Fragility course is also accredited by the Chartered Management Institute (CMI).

Further details can be found on the website (Stabilisation and Governance, Corruption and State Fragility) and the brochures (below).

We would be very grateful if you could tell any of your colleagues, friends and others who you think may be interested in these exciting, innovative and important courses, which aim to equip participants with enhanced understanding of and ability to address some of the key challenges posed by conflict-affected environments.

Thank you very much.

Best wishes, Eleanor

Brochure – Stabilisation Brochure – Anti-Corruption, Governance and State Fragility Stabilisation image Governance Image

Thoughts on governance in the security and defence sector

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This short paper aims to share few thoughts on governance issues in the security and defence sector based on my personal assessment of cote d’Ivoire. Transparency International published an outstanding index in 2013 (GI2013) by assessing corruption risks in the defence sector. The topics (themes) that I cover below, all come from that Index. One can easily apply the guidelines to any country and adapt them to the national reality.

1/ Legislative scrutiny over defence and security policies:

There is a formal provision for effective and independent legislative scrutiny of defence policy in Cote d’Ivoire (article 71 of constitution). However, in practice, that provision is insufficient because the national Defence Policy formulation process itself is not mentioned in the constitution as being part of the National Assembly (NA) mandate for scrutiny.

Indeed, Article 71 of the constitution stipulates that only “Military Personnel status”, “the Police status” and “Defence organization” are all subjected to the national assembly inputs. This is largely unsatisfactory and limits the action of the National Assembly.

The budget issue is also mentioned in that article 71, so it is the responsibility of the NA to vote the national defence budget before it is implemented. There is to this date no evidence of such vote for the past 4 years.

At last, despite the fact that the legislative scrutiny is referred to in the constitution, the influence of the NA on the defence policy formulation has always been very limited if not ineffective.

So as a general recommendation, legislative scrutiny over defence and security policies in any country is necessary and clearly proves a good level of transparency.

2/ Public debate over the defence policy:

Unfortunately, in cote d’Ivoire, the national defence policy is not debated and publicly available. One major reason for that is the opacity surrounding this issue. Moreover, a national security strategy has been adopted by the National council for Security (CNS). Unless this security policy is adopted by the national assembly, it will not be publicly available.

Therefore, one must admit that efforts have been made to bring issues related to national defence to the public.

The security sector reform is bringing the authorities to formally formulate a national defence policy which is inclusive and holistic. For instance, the national SSR strategy is available publicly and has been debated openly (all SSR actors participated) before being adopted. On the other hand, a public consultation (survey) has not been done to this end.

At last, the national assembly has not yet examined and passed the Law related to  the National Security and defence  Policy. This is due to the fact that this policy has not been made available to the national assembly.

As a general rule for a country to prove a certain level of transparency and good governance, it is critical to involve the public in the formulation of any defence or security policy through a public consultation (survey).

3/ Anti corruption policy dedicated to the defence and security sector:

Cote d’Ivoire has an openly stated general anti-corruption policy. Indeed, “the national plan for good governance and against corruption” and “the order N° 202013-660 of September 20th of 2013 about prevention and fight against corruption” are the main anti-corruption instruments.  They also apply to the military forces and the police.

However there is no openly stated and actively implemented anti-corruption policy towards the defence sector exclusively. “The military code “ does not specifically address corruption issues that might concern the soldier. In 2013, the Ministry of Defence initiated an Ethical Charter and a military code of conduct.  To this day there is no evidence of any of those two initiatives to be effectively adopted by the national assembly or any other institution. Nor are they publicly available. To this date the ministry of defence has arrested many soldiers involved in racketeering, extortion and fraud. Still efforts have to be made to implement the rules equally among soldiers involved in such crimes.

So in order to be effective, an anti-corruption policy must be clearly stated and strongly implemented.

4/ Whistleblowing as a solution to fight corruption:

Whistleblowing as a mean to fight corruption is more and more encouraged by the government. There is a law that protects whistleblowers from any type of threat (Order N°202013-660, chapter 3). This law applies to any citizen whether he belongs to the defence or the security ministries.

It is almost impossible to say whether this law offering protection is working in practice because security must prevail for any whitleblower. However, the chapter dedicated to this matter exists. The law has to be applied. Besides, the lack of trust among military personnel prevents any whistleblowing activity.

Whistleblowing as a mean to fight corruption in the security forces is a effective way provided there are clear guidelines and that allegations are not made on a subjective basis.

5/ Objective appointment and promotion within the security and defence forces:

The military personnel are unfortunately not subjected to an independent, transparent and objective appointment system in cote d’Ivoire. Nepotism and tribalism have for the past 3 years harmed the whole selection process for appointments in the military. Indeed, there is a committee in charge of appointments within the military but this committee lacks independence and transparency. Most of the time appointments will be made accordingly to political orders coming from above. Since the end of the crisis in 2011, tribal biased appointments have been denounced by international NGOs such as International Crisis Group and Amnesty International.

Regarding promotions, theoretically, military personnel are promoted through an objective and meritocratic process. Besides, within the defence and security institutions can be found specific committees in charge of assessing potential candidates for promotion, in conformity with the law and internal rules. However, political consideration and favoritism sometimes weaken the process. In many cases external institutions influence decisions made by those committees. So there is no independent oversight on this matter.

Appointment and promotion are key matters when it comes to governance in the defence and security sectors. So they both have to be tackled very seriously.Objectivity and merit must prevail in the decisions made. Moreover, mechanisms created to manage appointments and promotions must be independent.

6/ Defence purchases coherence with identified and quantified requirements:

In cote d’Ivoire, most of the defence purchases made do not derive from any coherent assessment mechanism. So there are no clearly identified and quantified requirements. For some specific security situations, needs are identified and purchases made. So it is more opportunistic than thoroughly planned. For instance the latest purchase of surveillance and war vessels in 2014, does not comply with the national security strategy or any other policy document. However these maritime acquisitions derive from the need to counter maritime piracy and to show neighbors the maritime capacity of cote d’ivoire in case of dispute or crisis.

Coherence and conformity must prevail when it comes to defence or security purchases because requirements exist within security and defence policies and acquisition laws and must be implemented as planned.