Corruption: Latin America Worsens

Brazil suffers dismantling of anti-corruption frameworks.

BY LATINVEX STAFF

Costa Rica saw the worst deterioration and the Dominican Republic the best improvement in their corruption scores the past year, according to the latest Corruption Perceptions Index from Germany-based Transparency International.

All in all, the average score for Latin America worsened for the second year in a row, according to a Latinvex analysis.

Brazil, Mexico, Argentina, Chile, Colombia and Peru – the top six economies in Latin America – saw their scores unchanged.

Brazil’s score of 38 ranks it as the sixth-best country in Latin America, along with Argentina. However, it has suffered from an increase in corruption thanks to government policies, Transparency points out.

“In the last four years, Brazil faced an unprecedented dismantling of anti-corruption frameworks that had taken decades to build,” it says. “Despite repeated claims that he ran a corruption-free government, former-president Jair Bolsonaro, his cabinet ministers, allies and even family members were subject to corruption investigations. His government created the largest institutionalized corruption scheme ever known in Brazil, known as the “secret budget.” Through this scheme, billions of Reais were allocated to favor political allies, with serious impacts on health, education and infrastructure policies.”

Mexico has not been able to improve its score in the CPI for a third consecutive year.

“After four years of President Lopez Obrador’s (AMLO) government, there have been no convictions of major public officials or private executives in corruption cases – some of them involving his political network,” Transparency says. “Furthermore, the political tension between the President and autonomous oversight institutions responsible for ensuring access to information (INAI) and for guaranteeing free and fair elections (INE) signal a tendency to undermine the necessary checks and balances of a functioning democracy.”

Costa Rica has dropped four points in the last three years, reaching its lowest ever score.

“Recent corruption scandals point to transparency deficits, overpricing and a lack of competition in the infrastructure sector, which is a trend that can be seen across the region,” Transparency says. “Allegations of illegal political financing during the electoral campaign of President Rodrigo Chaves may also help explain recent results.”

Meanwhile, the Dominican Republic has gained four points in the CPI in the last two years by strengthening the independence of its justice and oversight bodies, enhancing transparency in public procurement, and enacting an asset forfeiture law - a key legal instrument to combat corruption and organized crime, Transparency points out.

“However, the slow pace of the judicial processes has hampered progress with convictions for corruption,” the anti-corruption watchdog warns. “There is concern in Dominican society that the courts are not living up to the strong national demand to advance in the fight against corruption and crime.”

Although Peru’s score didn’t change, Transparency singles out the corruption in that country.

“With six changes of government in six years and five former presidents under investigation, Peru is suffering from violence and political instability driven by corruption,” it says. “The recent attempt to dissolve the parliament and alter the order by former president Pedro Castillo – also under investigation for corruption – is the latest expression of a long-standing political crisis that prevents the country from building a more democratic and inclusive society. Reforms adopted in recent years have been postponed or sabotaged. These include the modernization of the civil service, the improvement of the public integrity regime, and greater autonomy of the transparency authority. The processes need to be reinvigorated. Swifter progress is also needed in emblematic corruption cases, while conducting them with all legal guarantees.”

In the worst performers this year, including Venezuela, Nicaragua, Honduras and Guatemala, elites and organized crime have co-opted state institutions, according to Transparency International.

“Weak and unaccountable public institutions in Latin America have created fertile ground for organised criminal networks to flourish, fuelling violence and insecurity,” it says. “These are among the main concerns for Latin Americans, along with corruption and the economy. In many countries, law enforcement and corrupt officials collaborate with criminal gangs or accept bribes in exchange for turning a blind eye to their illicit activities. In Honduras, Guatemala and Peru, evidence suggests that organized criminals wield a strong influence over candidates and politicians, financing electoral campaigns or even running for public office themselves.”

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