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December 2008

Ponzi Schemes in Russia, Colombia and the US: from Mavrodi to Murcia to Madoff (MMM)

Submitted by Kaufmann on Thu, 2008-12-18 08:34

Very recently we witnessed political and social unrest in Colombia due to the implosion of the DMG pyramid scheme (named after the scammer, David Murcia Guzman).  And now we got Madoff in Wall Street.  These cases today show how difficult it is sometimes to learn from the past.  Especially when past events are far way in space and time…

I have received articles from experts in Colombia who found parallels in their current case with the analysis I made long time ago on the Mavrodi’s MMM pyramid scheme collapse, which inflicted major pain on so many Russian citizens in 1994.  The focus of my old article was on the MMM Russian case.  But there were other such financial collapses caused by pyramid schemes at that time, including in Romania, and then the tragic case of Albania, in which 2,000 citizens died during the civil war that ensued.

 

Siemens and the illusion of CSR and codes of business integrity

Submitted by Kaufmann on Tue, 2008-12-16 12:36

Siemens just settled on a major international corruption case.  It turns out that over the past decade Siemens and some of its subsidiaries made at least 4,283 payments either to public officials or “agents” to secure or retain contracts.  The estimated amount of the payments made in more than ten countries surpassed $1.4 billion.  During the current case, the criminal damages from Siemens were calculated to amount for up to $2.7 billion.  Now fines totaling $1.6 billion have been charged; Siemens cooperation with the authorities is cited as reason for the somewhat reduced fine...

Illinois Governor Blagojevich: sign of endemic corruption in the US?

Submitted by Kaufmann on Thu, 2008-12-11 14:00

The new corruption scandal embroiling Illinois Governor Blagojevich is already resulting in sweeping generalizations about the hopelessly corrupt state of that State.  And commentators from other States are jumping in to suggest that their State can compete with Illinois in having such high levels of corruption. 

Wait a second.  First, let us take a world-wide perspective.  Granted, the US in general is not a model for the world in terms of control of corruption.  Countries like New Zealand and the Nordics are closer to being a model of integrity instead.  There are 18 countries rating better than the US in controlling corruption according to the Worldwide Governance Indicators.     Yet there are about 190 countries rating worse.   

 

International Anti-Corruption Day

Submitted by Alfredo on Tue, 2008-12-09 17:13

Today the world celebrates the International Anti-Corruption Day.  This has become a tradition since 2003, when 129 countries signed the United Nations Convention against Corruption (UNCAC) in Merida, Mexico, after working several years towards the creation of an international legal document against corruption.  Even though an anti-corruption spirit must be embraced at all places and times, today is a good moment to raise awareness about some of the vast and remaining challenges of corruption not only developing countries, but also in the most developed world.

At the Bank, the International Anti-Corruption Day has been a day of mixed feelings for many of us who are part of the governance and anti-corruption community.  A great leader such as Dani Kaufmann gave a farewell lecture (if couldn't attend, you can watch the B-SPAN video).  Yes, he is moving on soon to the Brookings Institution, but before that, he shared with us his always clear and accurate perspective on the main governance and corruption challenges that the world is facing.

Daniel Kaufmann's Farewell Lecture - B-SPAN video

Submitted by Alfredo on Mon, 2008-12-08 17:23

Update: If you could not follow Dani Kaufmann's Farewell Lecture on December 9th, here is the link to the B-SPAN video and a brief summary of the presentation.

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For those who cannot attend in person to Dani Kaufmann's Farewell Lecture , tomorrow, but who would like to follow it online, the event will be webstreamed live and accessible to all at http://worldbank.org/wbi/   The transmission will start a few minutes before 9a.m. -Washington DC time.

Before and during the event you can share your comments and questions through this blog or by sending an email to governancewbi@worldbank.org

Dani Kaufmann: the institution, the idea and the man

Submitted by Edouard on Mon, 2008-12-08 14:35

So Dani Kaufmann is leaving us after all. Since he’s made that announcement a few weeks ago, our small Global Governance unit at the World Bank Institute has had trouble coming to terms with the reality. I guess what finally made the news sink in were the posters and messages announcing his Farewell Lecture tomorrow December 9th, 9.00 a.m. at the World Bank’s Preston Auditorium.

Daniel Kaufmann's Farewell Lecture - Governance, Crisis, and the Longer View: Unorthodox Reflections on the New Reality

Submitted by Alfredo on Fri, 2008-12-05 16:16

As many of you already know, Dani Kaufmann is moving on to the Brookings Institution, where he will continue his valuable work in the field of governance and anti-corruption. Fortunately, we will still hear a lot from him -inside and outside the Bank- in the coming future.  In the meantime, please join him this coming Tuesday, December 9th, for a special farewell lecture, in which he will share his reflections, experiences and thoughts on current governance and corruption challenges.  Please find the official invitation and details of the event in the rest of the entry.  If you cannot attend in person, you can follow the lecture virtually through webstreaming and participate by posting comments and questions.

A message from Kaufmann

Submitted by Kaufmann on Thu, 2008-12-04 16:48

Some of you may know that I am in the process of moving on from the World Bank to the Brookings Institution.  Let me also share with you the email I have just sent out to many outside friends, colleagues and partners. 

 

Dear friends, partners,

As some of you may already know, I announced internally over a month ago that I was moving on from the World Bank. I wanted to write to you directly to give you my new coordinates, to briefly share a thought, and to thank you for your continued collaboration.