The Troubled Media Environment in Ukraine

The Troubled Media Environment in Ukraine

Hon.
Ben Nighthorse Campbell
United States
Senate
108th Congress Congress
First Session Session
Tuesday, April 29, 2003

Mr. President, later this week individuals around the world will mark World Press Freedom Day. The functioning of free and independent media is tied closely to the exercise of many other fundamental freedoms as well as to the future of any democratic society. The Commission on Security and Cooperation in Europe, which I co-chair, is responsible for monitoring press freedom in the 55 participating States of the Organization for Security and Cooperation in Europe, OSCE. Recently, I reported to the Senate on the deplorable conditions for independent media in the Republic of Belarus. Today, I will address the situation of journalists and media outlets in Ukraine.

 

Several discouraging reports have come out recently concerning the medic environment in Ukraine. These reports merit attention, especially within the context of critical presidential elections scheduled to take place in Ukraine next year. The State Department's Country Reports on Human Rights Practices in Ukraine for 2002 summarizes media freedoms as follows: "Authorities interfered with the news media by intimidating journalists, issuing written and oral instructions about events to cover and not to cover, and pressuring them into applying self-censorship. Nevertheless a wide range of opinion was available in newspapers, periodicals, and Internet news sources."

 

Current negative trends and restrictive practices with respect to media freedom in Ukraine are sources of concern, especially given that country's leadership claims concerning integration into the Euro-Atlantic community. Lack of compliance with international human rights standards, including OSCE commitments, on freedom of expression undermines that process. Moreover, an independent media free from governmental pressure is an essential factor in ensuring a level playing field in the upcoming 2004 presidential elections in Ukraine.

 

In her April 18, 2003 annual report to the Ukrainian parliament, Ombudsman Nina Karpachova asserted that journalism remains among the most dangerous professions in Ukraine, with 36 media employees having been killed over the past ten years, while beatings, intimidation of media employees, freezing of bank accounts of media outlets, and confiscation of entire print runs of newspapers and other publications have become commonplace in Ukraine.

 

The murder of prominent journalist Heorhiy Gongadze--who disappeared in September 2000--remains unsolved. Ukrainian President Kuchma and a number of high-ranking officials have been implicated in his disappearance and the circumstances leading to his murder. The Ukrainian authorities' handling, or more accurately mishandling of this case, has been characterized by obfuscation and stonewalling. Not surprisingly, lack of transparency illustrated by the Gongadze case has fueled the debilitating problem of widespread corruption reaching the highest levels of the Government of Ukraine.

 

Audio recordings exist that contain conversations between Kuchma and other senior government officials discussing the desirability of Gongadze's elimination. Some of these have been passed to the U.S. Department of Justice as part of a larger set of recordings of Kuchma's conversations implicating him and his cronies in numerous scandals. Together with Commission Co-Chairman Rep. Chris Smith, I recently wrote to the Department of Justice requesting technical assistance to determine whether the recordings in which the Gongadze matter is discussed are genuine. A credible and transparent investigation of this case by Ukrainian authorities is long overdue and the perpetrators--no matter who they may be--need to be brought to justice.

 

The case of Ihor Alexandrov, a director of a regional television station, who was beaten in July 2001 and subsequently died also remains unsolved. Serious questions remain about the way in which that case was handled by the authorities.

 

A Human Rights Watch report, “Negotiating the News: Informal State Censorship of Ukrainian Television,” issued in March, details the use of explicit directives or temnyky, lists of topics, which have been sent to editors from Kuchma's Presidential Administration on what subjects to cover and in what manner. The report correctly notes that these temnyky have eroded freedom of expression in Ukraine, as "editors and journalists feel obligated to comply with temnyky instructions due to economic and political pressures and fear repercussions for non-cooperation." To their credit, the independent media are struggling to counter attempts by the central authorities to control their reporting and coverage of issues and events.

 

Another troubling feature of the media environment has been the control exerted by various oligarchs with close links to the government who own major media outlets. There is growing evidence that backers of the current Prime Minister and other political figures have been buying out previously independent news sources, including websites, and either firing reporters or telling them to cease criticism of the government of find new jobs.

 

Last December, Ukraine's parliament held hearings on "Society, Mass Media, Authority: Freedom of Speech and Censorship in Ukraine." Journalists' testimony confirmed the existence of censorship, including temnyky, as well as various instruments of harassment and intimidation. Tax inspections, various legal actions or license withdrawals have all been used as mechanisms by the authorities to pressure media outlets that have not towed the line or have supported opposition parties.

 

As a result of these hearings, the parliament, on April 3rd, voted 252 to one to approve a law defining and banning state censorship in the Ukrainian media. This is a welcome step. However, given the power of the presidential administration, the law's implementation remains an open question at best, particularly in the lead up to the 2004 elections in Ukraine.

 

I urge our Ukrainian parliamentary colleagues to continue to actively press their government to comply with Ukraine's commitments to fundamental freedoms freely agreed to as a signatory to the Helsinki Final Act. I also urge the Ukrainian authorities, including the constitutional "guarantor", to end their campaign to stifle independent reporting and viewpoints in the media. Good news from Ukraine will come not from the spin doctors of the presidential administration, but when independent media and journalists can pursue their responsibilities free of harassment, intimidation, and fear.

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''Should there be an authoritarian regime of either Yanukovych or Tymoshenko, with the criminal elements that will come along, it will take away the freedom of expression,'' he said. Five years after the Orange Revolution brought tens of thousands of people to the streets of the capital, public cynicism appeared widespread. Voters have offered to sell their votes on Web sites for the equivalent of between about $10 and $100. Despite the dire warnings, Alcee Hastings, a U.S. congressman who is deputy head of the international observer mission, told reporters Friday that so far no one has come up with evidence of intended voting irregularities. ''While the candidates accuse each other of fraud, neither of them has presented you in the media with a smoking gun,'' he said. ''I don't think there's going to be widespread fraud.'' Hastings noted that the election will come under intense scrutiny. He said there are more international observers in Ukraine for the presidential contest than for any previous election in the former Soviet Union. But Hastings did not rule out isolated efforts to falsify votes. ''Remember, I'm from Florida, the land of the hanging chads and the butterfly ballots,'' he said, referring to the disputed 2000 U.S. presidential contest and the controversial Florida vote count.

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Recognizing the existence of corruption throughout the OSCE region, Helsinki Commissioners have consistently addressed the problem by raising it through hearings, legislation, and the OSCE Parliamentary Assembly. Hearings in 2006 identified corruption as a hindrance to fulfilling human rights commitments and economic development in South-Central Europe (Helsinki Commission June 2006 Hearing). The role of corruption as a force in restricting freedom of the media in Azerbaijan was highlighted in a 2007 hearing (Helsinki Commission August 2007 Hearing). This report will draw attention to recent initiatives undertaken by the Helsinki Commission that have shown corruption undermines human rights, fundamental freedoms and overall security. Wherever found, corruption not only stunts democratic reform, but also weakens the security and economic condition of states. Although corruption manifests itself in various ways, this report can practically only discuss a few. For example, prominent manifestations within the three OSCE dimensions discussed include parliamentary corruption, diversion of funding from infrastructure and human trafficking. Understandably, countries will not solve a widespread and pervasive problem with a singular approach. Additionally, this report will discuss the importance of capacity building initiatives that focus on prevention as a critical element in an anti-corruption campaign. This is an element that must be included alongside the high profile anti-corruption prosecutions governments may be inclined to conduct. A number of international governmental and nongovernmental organizations produce regular surveys or reports on corruption. The 2008 survey of corruption by Transparency International (TI), an international nongovernmental organization that promotes anti-corruption policies worldwide, ranked twelve OSCE participating States in the bottom half of 180 countries surveyed. The least corrupt countries were assigned the highest ranking. Kazakhstan ranked 145, which was still ahead of the OSCE countries of Azerbaijan, Belarus, Kyrgyzstan, Russia, Tajikistan, Turkmenistan and Uzbekistan.2 Experts point out that since TI uses a survey, its findings may lag behind reality, reflecting only perceptions based on increased reporting resulting from government enforcement of anti-corruption laws. Others point out that surveys place too much emphasis on bribery although forms of corruption vary greatly from country to country.3 Nonetheless, other barometers, such as evaluations of the Group of States Against Corruption (GRECO), which measures anti-corruption policy reform and capacity through a multi-year expert evaluation process, suggest that some OSCE participating States are only partially implementing standards set by the group. Corruption, which was explicitly highlighted in the Parliamentary Assembly’s concluding document, the Astana Declaration,4 is a multidimensional blight that undermines human, economic, environmental, and security dimension policy goals throughout the OSCE region. Human Dimension Genuine democracy and rule of law cannot exist if the passage, implementation and judgment of the law favor the highest bidder. Moreover, the rule of law requires more than elections and a neutral and impartial judiciary; it requires that individuals receive the unbiased and dispassionate benefits of the law from all public servants. Larry Diamond wrote in the March/April 2008 issue of Foreign Affairs that, “[f]or a country to be a democracy, it must have more than regular, multiparty elections under a civilian constitutional order.” He points out that when regular elections are accompanied by corrupt police and bureaucracies, many people are “citizens only in name” and in their disillusionment gravitate toward authoritarian leadership.5 Observers frequently focus attention on removing graft from courts and elections. However, corruption in other spheres of society, such as among lower level public servants, contributes to the notion of corruption as an acceptable behavior often having the most immediate adverse effect on the average person. Government employees of modest rank are capable of denying basic fundamental freedoms such as equal protection of the law, enjoyment of property, the right of minorities to exercise human rights and freedoms, and the independence of legal practitioners.6 Those who advocate for the victims of corruption, even within the judicial systems, often cannot do so without repercussions. Furthermore, when parliaments become sanctuaries for persons engaged in corruption the protection conveys a message that corruption will be tolerated elsewhere in society. Parliamentary Immunity In a 2006 brief, the U.S. Agency for International Development (USAID) defined parliamentary immunity as “a system in which members of a legislature are granted partial immunity from prosecution from civil and/or criminal offenses.” USAID further states that parliamentary immunity’s purpose is to “reduce the possibility of pressuring a member to change his or her official behavior [with] the threat of prosecution.”7 Unrestrained parliamentary immunity impedes the investigation and prosecution of corruption, makes parliamentary acquiescence and perpetuation of corruption possible, fosters a culture of corruption among other government officials and security officials, and disproportionately affects minority populations. According to Development Alternative Incorporated (DAI), a development consulting company, developing democracies tend to favor the broadest scope of immunity which allows corrupt activities almost with impunity. Although rare, a parliament may vote to lift immunity from one of its members, as was the case in Armenia in 2006 when immunity was removed for a parliament member who allegedly failed to pay taxes and instigated a gun fight.8 While parliamentary immunity can protect the independence of legislatures, frequently it is a shield for illicit activity. A 2007 USAID report, Corruption Assessment: Ukraine, found that “legislators have amassed fortunes through business interests and other means . . . with little transparency or accountability.” Moreover the report found that broad immunity created a powerful incentive to seek public office and introduced “illicit funding” into the political process.9 Even if prosecuting agencies investigate the activities of legislators, the individuals are rarely prosecuted because the parliament will not lift immunity. ArmeniaNow, an NGO publication, found that in the first fifteen years of Armenian independence, immunity was waived in only five instances.10 Although democratic attributes exist ostensibly in most OSCE participating States, features such as elections may ironically serve to conceal the self-serving rule that results from corruption. Parliamentary corruption can lead to a cycle in which the parliament cannot effectively exercise an oversight role because its members have a personal stake in the illicit activity. The Bulgarian parliament’s resistance to closing duty-free vendors along its borders is an example of the controlling power of corruption according to Bulgaria’s Center for the Study of Democracy. Since 1992, duty-free fuel, cigarette and alcohol vendors have operated at Bulgaria’s borders.11 These operations, allegedly tied to organized crime, deprived the state of significant tax revenue and could undercut prices of competitors subject to duties. As a condition of joining the European Union, Bulgaria was required to raise excise duties up to a standard set by the EU. Furthermore, in 2003 the Minister of Finance signed a letter of intent with the International Monetary Fund to close all duty-free shops.12 In response to the increased tax, the illegal trade in duty-free goods increased. In 2004, the Finance Minister extended a license for the shops to continue until 2009 despite international commitments to the contrary. In 2006, the Bulgarian Parliament, instead of closing the shops, passed a law that allowed the shops to shift to the non-EU borders with Serbia, Turkey, and Macedonia.13 Finally, in early 2008, the Parliament passed a law to close the duty-free shops.14 Previously, the Center for the Study of Democracy asserted that “national level illegal proceeds from duty-free trade [had] been deployed to capture the state” and the vendors had used “political corruption to secure perpetual monopoly business positions.”15 Helsinki Commission Chairman Senator Benjamin L. Cardin has raised the issue of unbridled parliamentary immunity on many occasions. In a hearing in June 2006 on Human Rights, Democracy, and Integration in South Central Europe, Senator Cardin made a commitment to push the Parliamentary Assembly to adopt initiatives calling for changes to parliamentary immunity laws. At the July 2006 OSCE Annual Session Cardin authored a resolution on parliamentary immunity, which passed, urging the OSCE participating States to “[p]rovide clear, balanced, transparent, and enforceable procedures for waiving parliamentary immunities in cases of criminal acts or ethical violations.” In 2007, Cardin raised the issue of how parliamentary immunity can serve as cover for corruption in a Helsinki Commission hearing on Energy and Democracy (Helsinki Commission July 2007 Hearing). He has also urged nations such as Ukraine to consider changing their parliamentary immunity laws.16 Petty Corruption Like water flowing downhill, if corruption exists at the higher levels of government and society, it will permeate the performance of public servants at every level. During a 2008 Helsinki Commission hearing on Kazakhstan’s accession to the OSCE Chairmanship, Martha Olcott of the Carnegie Endowment for International Peace identified corruption that is “rampant in daily life” in Kazakhstan and present at all levels of government (Helsinki Commission July 2008 Hearing).17 Endemic corruption within the government bureaucracy has an immediate effect in terms of confidence in government and cost to the people of any country. A 2009 report stated that among European Union countries, 17 percent of Greeks and thirty percent of Lithuanians had admitted to paying a bribe to obtain service from a public administrative body.18 In many countries, widespread corruption has led to a level of acceptance. GfK Research, an international marketing and research company, conducted a study in 2006 which reported that 61 percent of Romanians, 58 percent of Bosnians, and 56 percent of Czechs regarded bribes as a normal part of life.19 Frequently, national health care service is provided only to those willing to pay extra to medical personnel. In Romania, $225 paid by Alina Lungu to her doctor was apparently not enough to prevent him from leaving the pregnant women alone for an hour during labor and her baby from being born blind, deaf, and with brain damage due to the umbilical cord being wrapped around him.20 Global Integrity, a nonprofit organization that monitors governance and corruption worldwide, provides an account of a Latvian girl experiencing stomach pain who was allowed to sit in a hospital for several days without pain-killers or treatment until her father paid money to the doctor.21 A survey in Bulgaria showed that the amount of Bulgarians identifying the health sector as the most corrupt in comparison to others such as customs, police, and judiciary increased from 20 percent in 2002 to 39 percent in 2007.22 According to 2007 reporting, Bulgarians experienced corruption in almost every type of health service including referrals, surgery, birth delivery, and emergency care. The problem is very widespread in hospital care.23 Some conclude that health workers take extra payments from patients for services already covered by health insurance and administrators overstate costs in hospital care due to insufficient hospital financing and financing regulations that encourage overspending.24 fficials regularly abuse their authority in the enforcement of traffic laws and in the area of travel. Vladimir Voinovich, a prominent Russian author, points out that to become a public official or policeman you must pay off your boss and that payment is financed through taking bribes.25 Even when officials wish to behave honestly, providing “a stream of payments to patrons” becomes a matter of survival.26 In Uzbekistan, permission from the local government is required to move to another city and according to the 2008 Department of State Report on Human Rights Practices in Uzbekistan, local authorities commonly issue the required documents only in return for a bribe. The report also states that police “arbitrarily detained people to extort bribes” on a regular basis.27 The 2008 report on Human Rights Practices in Azerbaijan noted that police officers regularly impose arbitrary fines on citizens and seek protection money.28 The report on Poland recognized that corruption among police was widespread.29 In many countries, drinking and driving has become commonplace because police can be bribed to look the other way. The Effect of Corruption on Minorities More often than not, police corruption disproportionally affects minority groups. In a Helsinki Commission briefing in 2004, Leonid Raihman of the Open Society Institute described the plight of Roma in Russia who are trapped in a cycle of poverty exacerbated by bribes extracted by the Russian police (Helsinki Commission September 2004 Briefing). Often detained on charges of not possessing proper personal documents or a false accusation of committing a crime, Roma will hire an attorney whose sole function is to negotiate the price of the bribe for their release. According to Raihman, the situation is analogous to that of a hostage whose freedom is being negotiated. This can sometimes lead to families selling their car, life savings or home. He noted that the worst case scenario results in homelessness.30 Regulations that require people to register their official place of residence or obtain an internal passport provide fertile soil for minority exploitation through corruption. According to the 2007 Department of State Report on Human Rights Practices in Russia, “darker skinned persons from the Caucasus or Central Asia” were regularly singled out to see if they possessed an internal passport and had registered with local authorities.31 Typically, if allowed to register, a person must pay a bribe.  Retaliation against Lawyers The legal profession, in addition to an independent judiciary, is an essential part of a functioning democracy. Still, government officials have used retaliatory criminal prosecution and coercive measures to discourage lawyers from representing clients in cases that expose corruption. An example from Russia is that of the attorneys representing Hermitage Capital and its executives.32 Lawyers from four independent law firms representing Hermitage have apparently been subject to unlawful office searches, illegal summonses demanding that they testify as witnesses in the same cases where they are representing clients, and that they falsify testimony against clients. Lawyers who failed to comply were subjected to criminal charges. Several of the lawyers have fled Russia.33 Sergei Magnitsky, a Russian lawyer with Firestone Duncan, a firm which represented Hermitage Capital, was arrested in November 2008 in connection with his investigation of government corruption. Magnitsky died in custody this November in a case that highlighted the difficulty of standing up to corruption and poor Russian prison conditions. As the dismissal of the head of the tax agency which Magnitsky was investigating suggests, the death is still reverberating at the Kremlin.34 However, it remains to be seen if long-term actions to protect lawyers exposing corruption will be undertaken. Persons familiar with the Russian legal system say little importance is placed on the attorney-client privilege.35 Allegedly, companies like the 2X2 television network, charged with committing crimes against the state by broadcasting content including the Simpsons and South Park encounter difficulties finding legal representation.36 Government attacks on lawyers and their clients who expose corruption represent a serious threat to the rule of law. When lawyers are intimidated and afraid to represent clients, citizens are defenseless against corruption. A primary reason for this is that courts present many complexities that non-attorneys may find difficult to overcome. The U. S. Supreme Court in Powell v. Alabama explained the challenge faced by a non-attorney representing himself in saying that the non-attorney often cannot recognize if the “indictment is good or bad,” is “unfamiliar with the rules of evidence,” and “lacks the skill and knowledge adequately to prepare his defense.”37 It is imperative that lawyers are protected from government interference and political persecution so that they may effectively represent and protect their clients’ interests. The Economic Dimension Studies suggest corruption retards economic development and generally results in a lower standard of living. The OSCE Best-Practice Guide for a Positive Business and Investment Climate, asserts that “corruption is clearly a major indicator of the health of a business and investment climate” and that the “wealthiest OSCE countries are generally the countries judged to be least corrupt by international observers.”38 Corruption adversely affects economic growth by slowing infrastructure development, increasing costs for businesses, and preventing competitive business outcomes. Moreover, the responsibility of wealthier OSCE participating States cannot be disregarded. Multinational corporations from developed nations, largely through acquiescent behavior, may promote corruption in countries where it is most prevalent. Cost to Business and the Overall Economy Bribes pose a significant cost for businesses in many OSCE countries. The Best Practice Guide notes that in former Soviet countries a higher percentage of business revenue is dedicated to paying bribes than in Western Europe.39 The guide reported that in some countries businesses pay up to four percent of their total costs in bribes.40 Whether through customs, licenses, or permits, the opportunity for graft exists where there are excessive bureaucracies or regulations. The CATO Institute’s report, The Rise of Populist Parties in Central Europe, identifies building permits as “an especially attractive source of extra income.”41 According to a World Bank report, building a general storage two-story warehouse in Moscow requires 54 procedures and 704 days.42 This interaction with numerous agencies and government officials increases the opportunity for bribes. Bribes ultimately distort market outcomes because the most competitive companies are not rewarded for their efforts and therefore some companies choose not to compete at all. For example, government contracting is one area where bribes undermine competition and the public good. J. Welby Leaman, an advisor to the U.S. Treasury Department wrote in the Pacific McGeorge Global Business and Development Law Journal, “public officials’ solicitation of their ‘cut’ impoverish government programs.”43 The CATO Institute report cites the case of Dell Corporation losing a computer contract with the Czech parliament. Dell’s bid reportedly met all technical specifications, was the lowest cost and offered to pay a penalty fee for late delivery. Nonetheless, the contract was awarded to a Czech firm that asked for twice as much as Dell.44 Leaman also notes that if a firm cannot pass on a bribe’s cost to the customer, that firm may choose not to compete, which robs the economy of “additional investment and competition.”45 Diversion of Wealth from Natural Resources While a number of OSCE participating States are fortunate to possess large reserves of oil and natural gas, in many instances the wealth produced by these resources does not benefit the citizens of the states, but only the few who control the resources. The Helsinki Commission held hearings in 2007 spotlighting this misappropriation and betrayal of public trust. Simon Taylor of Global Witness identified the problem’s crux in many countries noting that in Turkmenistan, a country of approximately five million people, “[60] percent of [the] population lives below the poverty line despite two billion dollars in annual gas revenues.”46 Remarkably, in Kazakhstan, the economy grew only 0.3 percent between 2000 and 2005 despite its exportation of 1.2 million barrels of oil a day. Taylor also framed the diversion of profits for personal use as a matter of energy security resulting in unreliable supply and higher prices (Helsinki Commission July 2007 Hearing).47 Following the hearings, then-Commission Chairman Alcee L. Hastings introduced an amendment to the Energy Independence and Security Act of 2007 (H.R. 3221), which became law, making it U.S. policy to support the Extractive Industries Transparency Initiative (EITI) and for the U.S. Secretary of State to report annually on U.S. efforts to promote transparency in extractive industry payments.48 The 2009 report notes United States contributions to the EITI Multi-Donor Trust Fund, senior level State Department encouragement to developing economies to join EITI, embassy officer engagement with government officials in developing economies, and U.S. Treasury Department collaboration with development banks.49 In 2008, then-Co-Chairman Cardin sponsored an amendment to the Statement of the July 2008 OSCE Parliamentary Assembly Annual Session that among other things, “encourages governments from oil and gas producing countries to introduce regulations that require all companies operating in their territories to make public information relevant to revenue transparency.” The amendment was approved by the OSCE parliamentarians and adopted as part of the Astana Declaration.50 If the economies of oil and natural gas rich OSCE participating States are to reach their full potential, transparency and accountability must exist between extractive industries and national government. Infrastructure In addition to the price of bribes, a business is disadvantaged to compete in a market with less infrastructure due to corruption. Ukraine exemplifies an OSCE country that stands to gain from economic growth if road projects are funded, efficient and transparent. The World Economic Forum’s Global Competitiveness report on Ukraine notes that the poor state of Ukraine’s roads is hindered by road construction processes that provide many opportunities for corruption.51 This situation impedes not only new road construction, but also repair of existing roads and bridge construction. The State Motor Road Service of Ukraine reported that Ukraine loses the equivalent of one billion U.S. dollars annually due to poor road conditions.52 While new road projects are underway, including a new ring road around Kyiv, current legislation does not allow for a competitive private bidding process, without which the road system will continue to rank 120th out of 134 countries ranked by the World Economic Forum in quality of roads. Ukraine is not alone, Moldova ranked 133rd out of 134 countries.53 Not surprisingly, business leaders in Moldova ranked corruption as the second most problematic business obstacle in that country behind access to financing.54 Fraudulent Appropriation of Private Property A pattern of takeovers of private companies and the government-directed persecution of their executives and lawyers is reportedly becoming the norm in Russia. A prime example was the illegal takeover of companies belonging to the Hermitage Fund, a joint venture between Hermitage Capital Management and HSBC Bank. The takeover was allegedly achieved through brazen abuses of power by law enforcement authorities and interference by government officials with Russian courts. William Browder, the founder of Hermitage, and Jamison Firestone, his attorney, recently met with Helsinki Commission staff to discuss their case. Browder’s visa was revoked in 2005 for what he believes was his work in exposing corruption in state controlled companies with close links to the Kremlin. He then appealed to high-level Russian officials, Browder said, including an impromptu conversation with then-First Deputy Prime Minister Dmitry Medvedev at the Davos annual meeting of the World Economic Forum. After these appeals, Browder alleges he received a phone call from a senior law enforcement officer apparently offering to restore his visa for a price. When this offer was rejected, the Russian Interior Ministry raided the offices of Hermitage and Firestone (see Human Dimension – Retaliation against Lawyers). Corporate seals, charters, and certificates of registration for the Hermitage Fund companies as well as documents belonging to numerous other clients were confiscated during the raids. Following the raids, the corporate documents taken by the Interior Ministry in the office raids were used to wipe HSBC off the share registry of the Hermitage Fund companies. The same documents were used to forge back dated contracts and to file lawsuits against the Hermitage companies alleging significant liabilities. Although Hermitage and HSBC were not aware of these cases, various judges awarded $973 million in damages in legal proceedings that were concluded in a matter of minutes. These same fraudulent liabilities were used by the perpetrators to seek a retroactive tax refund of $230 million in profit taxes that Hermitage had paid to the Russian government in 2006. At the time of the refund, HSBC and Hermitage had already filed six criminal complaints with the heads of Russian law enforcement authorities documenting the involvement of senior government officials in this fraud. Despite these detailed complaints, the fraudulent tax refund was promptly approved and paid to the perpetrators in a matter of days in sharp contrast to the lengthy process normally associated with such a refund. In response to the complaints Russian authorities created an investigative committee staffed by the very officials implicated in the complaints. Moreover, a number of spurious retaliatory criminal cases have been lodged against Browder, his colleagues, and four lawyers from four separate law firms. In the meantime, Mr. Browder and a senior colleague, Ivan Cherkasov, have been placed on the Russian Federal Search List and face the possibility of becoming the subjects of an Interpol Red Notice. Because of the coordinated nature of actions taken by state officials in this scheme together with the official reaction to the Hermitage complaints, Browder suspects high level political interference.55 A country where property can be seized without due process is one where investment is likely to be depressed for fear of arbitrary loss. Regulation of Multinationals While the OSCE participating States of Central and Eastern Europe and the former Soviet Union often receive the most criticism for failing to curtail corruption, West European countries also face problems with corruption. One notable case is the recent investigation of defense contractor BAE Systems, a British firm, for alleged bribery in arms sales to Saudi Arabia and separate probes into wrongdoing in arms transactions with Chile, the Czech Republic, Romania, South Africa, Tanzania, and Qatar. The British newspaper, The Telegraph, reported that an alleged six billion pounds (approximately nine billion dollars) were paid to various Saudi officials. Citing a threat to cease intelligence sharing by Saudi Arabia, the British government terminated the investigation.56 In response to the termination of the investigation, the Organisation for Economic Co-operation and Development (OECD), issued a report criticizing the British government for not considering alternatives to discontinuing the investigation. Moreover, the report criticized the U.K. for not enacting legislation to meet the country’s obligation under the OECD Anti-Bribery Convention.57 While other companies are under investigation, and some like Siemens A.G. have paid record-setting fines, the case of BAE systems stands out because of the record of the U.K. in holding its multinationals to account for overseas bribery. Writing in Foreign Affairs in 2006, Ben Heinemann and Fritz Heimann argue that an area of “emphasis must be the implementation of enforcement and prevention measures by developed nations, where bribery of foreign officials can be more readily exposed and prosecuted.” Unfortunately, their article points out that as of 2006, only France, South Korea, Spain and the United States have brought more than one prosecution.58 In July 2008, the House of Lords upheld the decision of the British government to end the investigation of BAE systems and the government of Prime Minister Gordon Brown has taken no steps to reopen the case. It should be noted that under the pioneer Foreign Corrupt Practices Act (FCPA), which predates the OECD Convention, the United States has steadily increased investigations and prosecutions.59 The FCPA has three major provisions. Its best known provision prohibits U.S. Corporations and individuals from using an instrumentality of interstate commerce to bribe a foreign official, political party or candidate.60The two other primary provisions require corporations to maintain records which accurately reflect transactions and to maintain “internal accounting controls” to provide assurance transactions61 are executed with management’s authorization.62 Observers note that U.S. courts are limiting exceptions to the law and extending its scope while the Department of Justice is joining FCPA charges with charges under other federal laws.63 Reportedly, as of May 2009, the Department of Justice was pursuing 120 investigations of possible FCPA violations.64Recent prosecutions have resulted in favorable court decisions for authorities. In 2004, in a broad interpretation of the law’s application, a Fifth Circuit Court ruling rejected the claim that Congress meant to limit the FCPA only to bribes relating to contracts. The court held that the legislative history implies that the law applies broadly even to payments that indirectly assist in obtaining or retaining business.65 A recent lower court narrowed an exception for lawful payments under the laws of the foreign country. In a situation where a person was relieved of liability after reporting the bribe, the court wrote there “is no immunity from prosecution under the FCPA . . . because a provision in the foreign law “relieves” a person of criminal responsibility.”66 The aggressive enforcement environment and the government’s willingness to consider company-implemented compliance programs in deciding whether to prosecute has a positive consequence of incentivizing other companies to establish such programs. What remains to be seen is to what extent nations with mature economies will hold multinational corporations to account during times of economic hardship. Although only a handful of countries have brought prosecutions, it should be noted that many investigations result in settlements which require fines. In the case of Siemens A.G., the company settled to pay more than $1.6 billion in fines to both German and U.S. authorities.67 If mature economies do not hold multinational corporations accountable, they are in effect promoting corrupt behavior and being duplicitous in criticizing corrupt practices elsewhere. The Security Dimension One account from the book The Natashas: Inside the New Global Sex Trade is the story of Stefa from Moldova who traveled to Romania looking for work. Stefa met a man who introduced himself as an agent marketing positions as maids. Regrettably, nothing could have been further from the truth. This man placed Stefa and other girls in a crowded apartment where they were paraded naked and auctioned like cattle. Natasha was eventually sold and smuggled to Italy where she was sexually assaulted and forced to work as a prostitute.68 Stefa’s story is a common one that is usually facilitated by corruption. Heinemann and Heimann write “one ignores corrupt states that are failed or failing at one’s peril, because they are incubators of terrorism, the narcotics trade, money laundering, human trafficking, and other global crime.”69 In addition to these illicit activities, many recent reports tie corruption to the proliferation of small arms trafficking and sales. Terrorism Many observers believe that terrorists appear to have taken advantage of corruption to conduct attacks. It was reported that one of two female suicide bombers from Chechnya who brought down two Russian passenger aircrafts in August 2004 paid a $34 bribe to board a plane for which she did not have a ticket. Shortly after, flight 1047 and another flight boarded by the second suicide bomber, flight 1303, blew up in mid-air after departing Moscow’s Domodedovo International Airport. Prominent Russian author Vladimir Voinovich, wrote on the Pakistani online newspaper The Daily Times that the terrorists who took control of the Dubrovka theatre in Moscow in 2002 were reportedly stopped fifty times by authorities while traveling to Moscow, but solely for the purpose of soliciting a bribe.70 An article inCrime & Justice International alleged that officials identified 100 Ministry of Internal Affairs (MVD) police personnel who were complicit in the travel of the Chechen fighters to Moscow.71 Corruption facilitates terrorism by decreasing border security and increasing money laundering. Kimberley Thachuk writes in the SAIS Review that “[c]riminal and terrorist groups depend on unimpeded cross-border movements, and so border guards, customs officers, and immigration personnel are notable targets of corruption.”72 In the U.S. Department of State’s Country Reports on Terrorism 2008, corruption among border guards was identified as a risk in the OSCE region, particularly Albania, Armenia, Kosovo, and Moldova.73 The targeting of border guards by criminal elements extends even to the United States. Recently, the U.S. Department of Homeland Security reestablished its internal affairs unit amid increased corruption investigations. It had been disbanded in 2003. In the spring of 2008, there were 200 open cases against U.S. law enforcement officers on the border. This corruption has involved smuggling of guns, drugs, and people.74 Corruption ultimately undermines the effectiveness of security forces to fight terrorism. Kimberly Thachuk notes that “such corruption spreads, as does an attendant loss of morale and respect for the command structure.”75 This deterioration in professionalism and morale could not come at a worse time. A July 2008 article in Forbes magazine on European crime claimed a 24 percent increase in terrorist attacks from 2006 to 2007.76 Arms Sales  As evidenced by prior testimony before the Helsinki Commission, corruption is a factor in many illicit arms sales worldwide. In June 2003, Roman Kupchinsky, then a Senior Analyst with Crime and Corruption Watch of Radio Free Europe/Radio Liberty, pointed out that sales from former Soviet states frequently involve a marriage of security forces and organized crime (Helsinki Commission June 2003 Hearing).77 This means individuals, not the government, are making the sales. Moreover, although OSCE participating States have agreed through the Forum for Security Cooperation to not issue export licenses for arms without an authenticated end-user certificate, these certificates are often forged. Accordingly, the buyer may not be the actual recipient of the weapons. United Nations arms embargoes notwithstanding, individuals and companies from numerous countries are involved in the manufacture, transit, diversion from legal use, and fraudulent company registration for illicit arms trafficking to countries or non-state actor groups under embargo according to Control Arms, a group of concerned non-governmental organizations. The list of countries included Albania, Belgium, Bulgaria, Moldova, Romania, Russia, Serbia, Ukraine and the United Kingdom.78 These illegal sales, which fuel conflict in the developing world, are estimated to be worth one billion dollars a year according to Rachel Stohl, an analyst at the World Security Institute’s Center for Defense Information. She noted in an article published for the SAIS Review that “[a]rms brokers are able to operate because they can circumvent national arms controls and international embargoes” frequently through corrupt practices.79 Human Trafficking The United Nations Protocol to Prevent, Suppress and Punish Trafficking in Persons defines trafficking as “the recruitment, transportation, transfer, harbouring or receipt of persons, by [involuntary means] for the purpose of exploitation.”80 Victor Malarek, author of The Natashas: Inside the New Global Sex Trade, makes clear that corruption is the lynchpin of the trade in women and girls. Even when countries enact laws and policies to prevent trafficking, corruption threatens to render them ineffective. Mohamed Mattar writes in the Loyola and Los Angeles International and Comparative Law Review that there are indications that exit requirements such as exit visas for trafficked victims are being obtained through bribes.81 Furthermore, Malarek asserts that besides former Soviet states corruption also exists in destination countries in which officials are complicit in allowing the illicit trade. Specifically, the book draws attention to corruption among border guards and police in Greece that enables the trafficking.82 Human trafficking for sexual and labor exploitation has wreaked havoc on Moldova. Moldova is an extremely susceptible source country because of poverty and associated corruption. The breadth of the problem is detailed in an article by William Finnegan in the May 2008 issue of The New Yorker. In large measure due to its economic plight, over 25 percent of Moldova’s workforce has migrated out of the country. A third of all children are missing a parent due to migration. Much of the population views emigration as the only hope to living a better life. Such conditions create a setting abundant with potential victims for traffickers. Finnegan asserts local authorities are generally not helpful unless you are a trafficker. He quotes a local prosecutor as saying “[t]he most powerful pimps in Moldova are all former cops.”83 In 2008 the U.S. Department of State initially ranked Moldova as a Tier 3 country meaning that it had failed to comply with minimum standards and failed to make significant efforts to eliminate human trafficking as outlined in U.S. law.84 In October 2008, the President upgraded Moldova to Tier 2 status because it had reopened investigations into official complicity and drafted a code of conduct for public officials.85 Although less reporting occurs on the breakaway republic of Transnistria than Moldova, the situation there appears alarming. Finnegan discovered that law enforcement officials are uncooperative with NGOs working on behalf of trafficked victims and corruption deters relatives of trafficked victims from contacting the police.86 Finnegan’s article makes clear that destination countries share a significant responsibility for human trafficking.87 Whether through deliberate corruption or turning a blind eye, doctors, police, border guards, accountants, lawyers, travel agencies or hotels in destination countries enable trafficking and exacerbate the problem in source countries. Every Western European country and the United States and Canada are destinations for trafficked persons. In its report, the Department of State claims that more than half of commercial sex workers in France were trafficking victims. The Department also recognizes Turkey as a significant destination country. Trafficked women and girls from Azerbaijan, Belarus, Bulgaria, Georgia, Kyrgyzstan, Moldova, Romania, Russia, Turkmenistan, Ukraine, and Uzbekistan find themselves in Turkey. The report notes that many police in Turkey are complicit in trafficking. The United States is not immune, the recent increase in corruption investigations against Customs and Border Protection officers are in part for taking bribes to allow the passage of human beings.88 OSCE Field Missions and Prevention Efforts89 While it is necessary to sound the alarm and call attention to corruption’s presence across the three OSCE dimensions, it is equally necessary to assess OSCE and non-OSCE efforts in the region to counter corruption. The last two decades have seen a consensus at the international level concerning norms and necessary anti-corruption action at the national level. This consensus is manifested in the United Nations Convention against Corruption (UNCAC). Despite international achievements, some would say that national level progress in decreasing corruption is at a standstill or being rolled back in some OSCE participating States. Broadly conceived, implementation is stalling. To understand why it is helpful to think of implementation occurring in two phases. The first phase consists of the passing of national laws implementing international commitments. The second phase, which is just as important, consists of institutions with independent and trained persons complying with and impartially executing the anti-corruption laws. This second phase has proven most problematic for many countries because the actions required to build capacity require a long term commitment and the dedication of resources and do not often attract media attention. Additionally, the notion that the nature of corruption differs from country to country should be embraced.90 The Office of the Coordinator of OSCE Economic and Environmental Activities (OCEEA) leads OSCE efforts in combating corruption. Through field missions, handbooks, and coordination with other international organizations, the OCEEA has promoted implementation of international anti-corruption agreements, efficient management of public resources and implementation of the Arhus Convention allowing greater access to information on the environment. Work to implement the UNCAC has paid off, with only thirteen OSCE participating States not having ratified the convention; and of those thirteen, only six have not yet signed the convention. However, this underscores the reality that ratification does not equate to true implementation of and compliance with the convention. This report cites corrupt activities within many OSCE participating States that have ratified the convention. With respect to this corrupt activity, OSCE field missions can be effective institutions for promoting substantive compliance with the convention. An official with one international organization stressed that the hard part in decreasing corruption is the taking of preventative measures. OSCE field missions routinely undertake and promote some of these measures which include identifying and resolving conflicts, training government officials, and engaging civil society. OSCE field missions commonly provide anti-corruption assistance to local governments. However, in a manner befitting the nature of the problem, field missions conduct distinctive work appropriate to their assigned country. For example, in Georgia the mission assisted, before being closed down this year, in establishing an Inspector General’s office to review the finances of government ministries. Advocacy and legal advice centers are operated by the mission in Azerbaijan to provide legal advice on complaints and to educate the public and government authorities. In 2008, the centers in Azerbaijan provided assistance in response to 2,500 complaints. Additionally, mobile workshops reached 2,360 people with awareness campaigns and frequently provided on the spot legal advice.91 Similar centers provide aid in Armenia. The use of existing advocacy and legal advice centers is not high among people in Kazakhstan. This lower use may exemplify the benefit of an approach that carefully addresses the needs of people and nature of corruption in a given country. Centers that target audiences other than the general public have been successful. In Tajikistan, Resource Centers for Small and Agribusiness and Centers for Promotion of Cross-Border Trade reportedly draw many patrons. It has also been reported that due to these centers, businesspeople have resisted illegal government inspections. Good Governance Centers in Georgia that assisted municipalities received high marks, and in addition to the government, were sometimes used by the general public. Prevention efforts directed at government employees at all levels are essential. Second round GRECO evaluation reports released in 2007 and 2008 identified a number of countries - some with field missions, such as Azerbaijan, and others without, such as Greece - that had not taken appropriate steps to protect government employees who are whistleblowers. In the case of Greece, sufficient protections for career advancement were not in place and employees typically could only report corruption to their immediate supervisor.92 Because the follow-on Addendum to the Compliance Reports are not public, it is unclear if adequate protections and measures to assist reporting has improved. Education coupled with preventative programs that build upon training are initiatives that field missions are well suited to provide through the various types of centers. The OSCE mission in Ukraine has initiated a public-private dialogue that addresses accountability in local government. Fostering a dialogue between government, private sector, and civil society is important because in many countries these groups mistrust one another. In Georgia, the OSCE is supporting the efforts of Transparency International to ensure that a broad range of voices from civil society and the business community are heard by the Task Force on Fighting Corruption as it develops a new Anti-Corruption Strategy and Action Plan. These initiatives recognize that not only will implementation vary from country to country, but that implementation measures will differ at different levels of government and require input from all facets of society. Field missions are conducting varying efforts to promote a similar dialogue between government and civil society in Tajikistan, Kazakhstan, and Azerbaijan. Recent meetings between Helsinki Commission staff and members of civil society and officials from international organizations suggest it may be misguided to keep a primary focus on national level authorities prosecuting alleged corrupt acts. One NGO member recently remarked that there are enough national level laws and that what is needed is impartial enforcement and an unbiased judiciary. In Curbing Corruption: Toward a Model for Building National Integrity, Daniel Kaufmann referred to this as the “Tackling-the-symptom bias” which “instead of identifying the root cause, involves thinking that the solution is to catch and jail a target number of criminals . . . or to pass another anti-corruption law in the country.”93 Kaufmann describes what may be the best case scenario. The worst case scenario expressed by both members of the NGO community and international organizations to the Helsinki Commission is that prosecution is used to target political opposition and journalists. Amplifying the problem are enforcement agencies that may lack the capacity to conduct an even-handed investigation. An official from Bosnia-Herzegovnia recently said that the country “has adopted three strategic plans and ratified numerous international conventions on corruption,” but there is no implementation and the commitments go unmet.94 Public GRECO compliance reports from its second round of evaluations conclude that Albania, Armenia, Azerbaijan, and Romania have only partially implemented measures to fully train investigators, prosecutors and judges to handle corruption cases.95Again, because the follow-on addendum to the reports are not public it is unclear if training has improved in these participating States. In 2005, the President of Kyrgyzstan signed a decree establishing the National Agency of the Kyrgyz Republic for Preventing Corruption. Reportedly, in that first year, the agency opted not to put into practice a number of recommendations of an outside expert sponsored by an international organization to provide support. Later, the agency disagreed with international organizations on the use of funds offered by those organizations. Reportedly, $300,000 were made available for capacity building, but the leadership of the agency was adamant that the money be used to increase salaries. Today the agency has seven computers for 49 staff and no Internet access, Helsinki Commission staff was told. Concerns also exist that a strong parliamentary immunity is a necessity when many governments are focused on prosecution of political opponents. The NGO member added that this prosecution is often targeted at politicians in a minority party highlighting the continued need for parliamentary immunity laws even if they allow some offenders and wrongdoers to evade prosecution. This view of targeted prosecutions has been echoed by workers with international organizations that have communicated with the Helsinki Commission on this subject. With the above in mind, it should be noted that the resolution authored by Chairman Cardin, and adopted by the Parliamentary Assembly in 2006, incorporates preventative measures by calling for the publishing of “rigorous standards of ethics and official conduct” and establishing “efficient mechanisms for public disclosure of financial information and potential conflicts of interest.”96 The goals set out in that resolution constitute a starting point that must be reinforced with other measures that over time build a common ethos of public integrity and service throughout government. It should also be noted that the OSCE has worked in tandem with the Global Organization of Parliamentarians Against Corruption (GOPAC) in participating States such as Kyrgyzstan to train parliamentarians in roles of oversight and budget control. Finally, Chairman Cardin’s resolution recommending that the Office of the Coordinator of OSCE Economic and Environmental Activities (OCEEA) develop best practices for parliamentarians to use echoed the 2005 OSCE PA’s Washington Declaration. That document praised the work of GOPAC and recommended that the OSCE “with other parliamentary associations and [GOPAC develop] a programme of peer support, education and anti-corruption initiatives.”97 The OSCE has also worked with GOPAC in running workshops and supporting local GOPAC chapters particularly in Southeast Europe. This is an effort that should receive continued support. The importance of capacity building within parliaments cannot be forgotten when confronting corruption. Conclusion: The Related Nature of Corruption Across the OSCE Dimensions No account of corruption in any dimension can be viewed in isolation. If corruption thwarts a competitive business environment or is endemic among public servants then the conditions are set for an underworld of crime to flourish. Once seedlings of graft take root, they grow rapidly. Soon the institutions of democracy that require the nutrients of transparency and accountability are choked by what people may have once considered the harmless taking of small amounts of money or property. In the aggregate, petty corruption emboldens grand corruption and vice versa. Eventually, a government cannot perform the basic tasks expected of it. It cannot defend individual rights enshrined in national law, protect the engagement of commerce, or provide for the security of its people. In many instances, elites restrict political access and limit economic competition. This is what Larry Diamond refers to as a “predatory state.” Moreover, Diamond asserts when people no longer advance “through productive activity and honest risk taking” but only through operating outside the law, the predatory state becomes a “predatory society.”98 While observers may disagree whether some OSCE participating States have reached such an extreme point, all states are always somewhere on the continuum between a functional electoral democracy and a predatory society. To combat corruption the OSCE, through existing field mission mandates, should continue to focus adequate attention to building capacity to identify and address corruption and promotion of a culture of integrity and anti-corruption among civil servants and civil society. All participating States should implement commitments under international treaties such as the UNCAC. However, ratifying the UNCAC and passing national laws targeting corruption is not enough. While prosecutions serve a deterrence function, they must be balanced by relatively low profile well-planned prevention programs that are sustained by sufficient resources. In order to identify and address the circumstances that foster corruption, collaboration must increase between governments, NGOs, corporations and small and medium size enterprises to develop specific strategies. OSCE countries should consider supporting neighbors by building upon the model of field missions. Corruption is a problem not likely to end soon, but is an area where progress may be made if small successes are reinforced with adequate resources. Work is needed to live up to the ideals recorded in the Parliamentary Assembly’s Astana Declaration and the earlier Istanbul Declaration of the 1999 OSCE Summit, in which OSCE participating States recognized corruption as a threat to “shared values” and pledged “to strengthen their efforts to combat corruption and the conditions that foster it.” The OSCE countries need to muster the political will, individually and collectively, to conduct a smarter fight against corruption – a threat to security, property, and fundamental freedoms throughout the expansive OSCE region. Footnotes 1 Joanna Lillis, “Kazakhstan: Nazarbayev Hints that Democratization will Take Back Seat on OSCE Agenda,” Eurasia Insight, July 9, 2008,http://www.eurasianet.org/departments/insight/articles/eav070908.shtml (accessed June 1, 2009) 2 2008 Corruption Perceptions Index: Persistently high corruption in low-income countries amounts to an “ongoing humanitarian disaster” (Berlin: Transparency International, 2008). 3 Michael Johnston, Syndromes of Corruption: Wealth, Power, and Democracy (New York: Cambridge, 2005), 19-21. 4 OSCE Parliamentary Assembly, Astana Declaration of the OSCE Parliamentary Assembly and Resolutions Adopted at the Seventeenth Annual Session, 2008, 7, 28, and 45. 5 Larry Diamond, “The Democratic Rollback: The Resurgence of the Predatory State,” Foreign Affairs87, no. 2 (2008): 39, and 42-44. 6 The participating States committed to support and advance these rights and freedoms, in addition to others, in the 1990 Copenhagen Document. “Document of the Copenhagen Meeting of the Conference on the Human Dimension of the CSCE,” June 29, 1990. 7 United States Agency for International Development, Parliamentary Immunity Brief: A Summary of Case Studies of Armenia, Ukraine and Guatemala, August 2006, 1-2. 8 Carmen Lane, Parliamentary Immunity and Democracy Development (Washington D.C.: DAI, 2007) 1-3. 9 United States Agency for International Development, Corruption Assessment Ukraine, Final Report February, 2006, 49 10 Gayane Mkrtchyan, “Not Above the Law?: Parliament Lifts Immunity, MP Hakobyan Must Face Prosecution,” ArmeniaNow.com, October 13, 2006, http://www.armenianow.com/?action=viewArticle&AID=1768 11 Center for the Study of Democracy, Effective Policies targeting the Corruption – Organized crime Nexus in Bulgaria: Closing Down Duty-Free Outlets, Brief, December 2007, 3. 12 Ibid., 5. 13 Ibid., 3. 14 Elena Koinova, “Changes to Duty-Free Trade Act passed in Parliament,” The Sofia Echo, March 28, 2008, http://sofiaecho.com/2008/03/21/659426_changes-to-duty-free-trade-act-passed-in-parliament 15 Center for the Study of Democracy, Effective Policies targeting the Corruption, 3. 16 Commission on Security and Cooperation in Europe, Energy and Democracy: Oil and Water?, 108th Cong., 2nd sess., 2007 (Prepared statement of Senator Benjamin L. Cardin, not unofficial transcript), https://www.csce.gov/international-impact/events/energy-and-democracy-oil-and-water (accessed June 22, 2009) 17 Commission on Security and Cooperation in Europe, Promises to Keep: Kazakhstan’s 2010 OSCE Chairmanship, 110th Cong., 2nd sess., 2008, (Prepared statement of Martha Olcott not unofficial transcript), https://www.csce.gov/international-impact/events/promises-keep-kazakhstan-s-2010-osce-chairmanship (accessed June 8, 2009). 18 Transparency International, 2009 Global Corruption Barometer Report, (Berlin: May, 2007) 32. 19 GfK Research, Corruption Climate in Europe, August 9, 2006, available athttp://www.gfk.hr/press1_en/corruption2.htm (accessed June 17, 2009). 20 Dan Bilefsky, “Medical Care in Romania Comes at an Extra Cost,” The New York Times, March 9, 2009. 21 Global Integrity, Global Integrity Scorecard: Latvia, 2007, 1-2. 22 Konstantin Pashev, Center for the Study of Democracy, Corruption in the Healthcare Sector in Bulgaria (Sofia, Bulgaria: 2007) 17. 23 Ibid, 17. 24 Ibid, 35. 25 Vladimir Voinovich, “Drunk on Corruption,” Daily Times, January 3, 2003,http://www.dailytimes.com.pk/default.asp?page=story_3-1-2003_pg3_4 (accessed June 18, 2009). 26 Michael Johnston, “Poverty and Corruption,” Forbes, January 22, 2009. 27 U.S. Department of State, 2008 Human Rights Report: Uzbekistan, February 25, 2009,http://www.state.gov/g/drl/rls/hrrpt/2008/sca/119143.htm. 28 U.S. Department of State, 2008 Human Rights Report: Azerbaijan, February 25, 2009,http://www.state.gov/g/drl/rls/hrrpt/2008/eur/119068.htm. 29 U.S. Department of State, 2008 Human Rights Report: Poland, February 25, 2009,http://www.state.gov/g/drl/rls/hrrpt/2008/eur/119098.htm. 30 Commission on Security and Cooperation in Europe, The Romani Minority in Russia, 108th Cong., 2nd sess., 2004, 8 (Prepared statement of Leonid Raihman found in official transcript). 31 U.S. Department of State, 2007 Country Reports on Human Rights Practices: Russia, March 11, 2008, http://www.state.gov/g/drl/rls/hrrpt/2007/100581.htm. 32 The account of how Hermitage Capital was seized corruptly through a series of non-transparent proceedings is told in the section addressing the Economic Dimension. 33 Jamison Firestone, conversation with Helsinki Commission staff, April 14, 2009. 34 Carl Mortished, “Kremlin sacking linked to Sergei Magnitsky case,” TimesOnline, December 16, 2009,http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6957931.ece (accessed December 22, 2009). 35 Lynda Edwards, “Russia Claws at the Rule of Law,” ABA Journal 95 (2009): 41. 36 Ibid., 42. 37 Powell v. Alabama, 287 U.S. 45, 69 (1932). 38 The Organization for Security and Cooperation in Europe, Best-Practice Guide for a Positive Business and Investment Climate, 2006, 30. 39 Ibid. 40 OSCE, Best-Practice Guide 30-31. 41 Marian L. Tupy, CATO Institute, The Rise of Populist Parties in Central Europe: Big Government, Corruption, and the Threat to Liberalism, November 8, 2006, 14. 42 The World Bank, Doing Business 2009: Country Profile for Russian Federation, 2008, 12. 43 J. Welby Leaman, “It’s Not Always Nice to Play Nice: Collusion, Competition, and Development,”Pacific McGeorge Global Business and Development Law Journal 20, no. 2 (2007): 291. 44 Tupy, Rise of Populist Parties, 9. 45 Leaman, “It’s Not Always Nice to Play Nice,” 291. 46 CSCE, Energy and Democracy, 108th Cong., 2nd sess., 2007 (Prepared statement of Simon Taylor not unofficial transcript) (accessed June 12, 2009). 47 Ibid.  48 Energy Independence and Security Act of 2007, Public Law 110-140, 110th Cong., 1st sess. (December 19, 2007). 49 .S. Department of State, Report on Progress Made in Promoting Transparency in Extractive Industries Resource Payments, June 24, 2009. On file with United States House of Representatives Committee on Foreign Affairs, 50 Parliamentary Assembly, Astana Declaration, 28. 51 Margareta Drzeniek Hanouz and Thierry Geiger, eds., World Economic Forum, The Ukraine Competitiveness Report: Towards Sustained Growth and Prosperity, 2008, 56. 52 Hanouz and Geiger, eds., The Ukraine Competitiveness Report, 56. 53 Michael Porter and Klaus Schwab eds., World Economic Forum, The Global Competitiveness Report 2008-2009, 385. 54 Ibid., 242. 55 William Browder, conversation with Helsinki Commission staff, April 14, 2009. William Browder did testify at a Helsinki Commission hearing just as this report was being completed in June 2009. During his testimony he provided a website (http://www.compromat.ru/main/vragi/raderykak.htm) that provided a price list for a range of activities attacking a corporate entity in Russia from erasing a company’s registration data to a complete takeover. 56 Jon Swaine, “BAE Systems executive ‘questioned over alleged bribery,’” The Telegraph, October 23, 2008, http://www.telegraph.co.uk/finance/newsbysector/epic/badot/3245563/BAE-Systems-executive-questioned-over-alleged-European-bribery.html (accessed June 15, 2009). 57 Organizations for Economic Co-operating and Development, United Kingdom: Report on the Application of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the 1997 Recommendation on Combating Bribery in International business Transactions, October 17 2008, 4. 58 Ben W. Heineman, Jr., and Fritz Heimann, “The Long War Against Corruption,” Foreign Affairs 85, no. 3 (May/June 2006), 77, 82. 59 Control Risks, Corruption, Compliance and Change: Responding to Greater Scrutiny in Challenging Times (London: 2009) 3. 60 15 U.S.C. §§ 78dd-1. 61 15 U.S.C. § 78m(b)(2)(A). 62 15 U.S.C. § 78m(b)(2)(B). 63 Gail P. Granoff and Brian Mich, 2008 FCPA Review, January 28, 2009 (Presentation at International Quality & Productivity Center FCPA Conference). 64 Dionne Searcey, “U.S. Cracks Down on Corporate Bribes,” The Wall Street Journal, May 26, 2009. 65 United States v. Kay, 359 F.3d 738, 755 (5th Cir. 2004). 66 United States v. Kozeny, 582 F. Supp 2d 535, 539 (S.D.N.Y 2008). 67 Cary O’Reilly and Karin Matussek, “Siemens to Pay $1.6 Billion to Settle Bribery Cases,” The Washington Post, December 16, 2008. 68 Victor Malarek, The Natashas: Inside the New Global Sex Trade (New York: Arcade Publishing, 2003), 112-113. 69 Heineman and Heimann, “The Long War,” 79. 70 Voinovich, “Drunk on Corruption”. 71 Graham H. Turbiville, Jr., “Corruption, Crime and Murder Undermine Counter-terrorist Efforts,”Crime & Justice International 21, no. 87 (July/August 2005), 8. 72 Kimberly Thachuk, “Corruption and International Security,” SAIS Review XXV, no. 1 (Winter-Spring 2005), 147. 73 U.S. Department of State Country Reports on Terrorism 2008, Europe and Eurasia Overview, April 2009. 74 Randal Archibold and Andrew Becker, “Border Agents, Lured by the Other Side,” The New York Times, May 27, 2008. 75 Thachuk, “Corruption,” 147. 76 Parmy Olson, “Europe’s Crime Capitals,” Forbes, July 15, 2008,http://www.forbes.com/2008/07/15/europe-capitals-crime-forbeslife-cx_po_0715crime.html 77 Commission on Security and Cooperation in Europe, Arming Rogue Regimes: The Role of OSCE Participating States, 108th Cong., 1st sess., 2003, 40 (Prepared statement of Roman Kupchinsky found in official transcript). 78 Control Arms, UN Arms Embargoes: An Overview of the Last Ten Years, Briefing Note, March 16, 2006, 2. 79 Rachel Stohl, “Fighting the Illicit Trafficking of Small Arms,” SAIS Review (Winter-Spring 2005), 64. 80 “Protocol to Prevent, Suppress, and Punish Trafficking in Persons, Especially Women and Children, Supplementing the United Nations Convention Against Transnational Organized Crime,” Article 3 (a), United Nations, (2000). 81 Mohamed Y. Mattar, “State Responsibilities in Combating Trafficking in Persons in Central Asia,”Loyola and Los Angeles International and Comparative Law Review 27 (Spring 2005), 161 (see footnote 76). 82 Malarek, The Natashas, 140-141. 83 William Finnegan, “The Counter Traffickers: Rescuing Victims of the Global Sex Trade,” The New Yorker, 2, 6, 7-8, http://www.newyorker.com/reporting/2008/05/05/080505fa_fact_finnegan (accessed June 8, 2009). 84 U.S. Department of State, Trafficking in Persons Report, June 2008, 184. 85 U.S. Department of State Senior Coordinator for Public Outreach, Office to Monitor and Combat Trafficking in Persons, email to author, December 10, 2008; Embassy of the United States, Moldova, “Moldova Moved up to Tier 2 in Trafficking in Persons,” press release, October 10, 2008,http://moldova.usembassy.gov/pr102908.html. 86 Finnegan, “The Counter Traffickers,” 10. 87 Ibid., 9, 11. 88 Rick Jervis, “Arrests of Border Agents on The Rise,” USA Today, April 23, 2009. 89 This section of report is based upon meetings and discussions with a variety of international governmental organizations and nongovernmental organizations who to the extent possible are not identified. Any opinions expressed or conclusions drawn do not necessarily reflect the official views of any of these organizations. 90 Johnson, Syndromes of Corruption, 186. 91 Office of the Co-ordinator of OSCE Economic and Environmental Activities, March 25, 2009, email to author providing numbers of complaints and people contacted. 92 Group of States against Corruption, Second Evaluation Round: Compliance Report on Greece, February 15, 2008, 9. 93 Daniel Kaufmann, “Anticorruption Strategies: Starting Afresh? Unconventional Lessons from Comparative Analysis,” in Curbing Corruption: Towards a Model for Building National Integrity, ed. Rick Stapenhurst and Sahr J. Kpundeh (Washington, D.C.: World Bank Publications, 1999), 37. 94 Miroslav Ajder, “Corruption Claims Hold Back Bosnia: Allegations of Fraud in Government Contracts and Privatization are Pitting the Government Against Monitors and Scaring off Foreign Investors,” BusinessWeek, March 17, 2009. 95 These compliance reports may be found at the GRECO web page,http://www.coe.int/t/dghl/monitoring/greco/evaluations/round2/reports(round2)_en.asp (accessed June 15, 2009). 96 Resolution on Limiting Immunity for Parliamentarians in order to Strengthen Good Governance, Public Integrity and Rule of Law in the OSCE Region, OSCE Parliamentary Assembly, 15th sess., Brussels Declaration (July 7, 2006). 97 OSCE Parliamentary Assembly, Washington, DC Declaration of the OSCE Parliamentary Assembly and Resolutions Adopted at the Fourteenth Annual Session, 2005, 35. 98 Diamond, “The Democratic Rollback,” 43. 

  • 60th Anniversary of the Voice of America's Ukrainian Service

    Mr. President, for six decades the Voice of America's, VOA, Ukrainian-language service has been providing an invaluable service through its consistent broadcasting of factual and comprehensive news and information to the people of Ukraine.  During the first four decades of its existence, the Ukrainian service reached a Ukrainian population starving for information under an extremely strictly controlled, propagandistic Soviet media environment. Ukrainians went to great lengths and some risks to overcome Soviet censorship, which included the jamming of VOA and other shortwave international broadcasting.  During the Cold War VOA Ukrainian provided its listeners with uncensored news about such monumental events as the Hungarian Revolution, the Prague Spring, rise of Solidarity, and the fall of the Berlin Wall. A variety of shows worked to open the outside world to Ukrainian listeners, including a Popular Music Show, a Youth Show, and the long running series Democracy in Action, which was about how democracy works in the United States.  The Ukrainian service also focused on developments within Ukraine itself. VOA broadcasts about Soviet human rights violations in Ukraine, including its coverage of activities of the Helsinki process and the Helsinki Commission, gave sustenance to Helsinki Monitors and other Ukrainian human rights activists, especially those languishing in the gulag for daring to call upon the Soviet government to live up to its Helsinki Final Act obligations. They knew that they were not forgotten. Furthermore, the Ukrainian service also provided objective information about the Chornobyl nuclear disaster and the development of Ukraine's movement for democracy and independence, culminating in the December 1, 1991, referendum in Ukraine in which an overwhelming majority of Ukrainians voted for the restoration of their nation's independence.  For nearly two decades since, VOA's Ukrainian service has continued to fill an important role in Ukraine's evolving democracy. VOA reported on the challenges that Ukraine faced and on the U.S.'s considerable support and assistance for Ukraine, including in the dismantling of the nuclear arsenal it inherited from the Soviet Union. During the Orange Revolution, VOA Ukrainian helped to reassure millions of Ukrainians that the international community would not sanction electoral fraud.  As Ukraine has evolved, so has the Ukrainian Service. While no longer broadcasting on radio as it did for most of its 60 years, it reaches more Ukrainians than ever with daily broadcasts over Ukrainian television--something unthinkable during Soviet rule--and reporting on its website. It continues to report on what is happening in Ukraine, but also it continues to cover every aspect of American life and society. As Chairman of the Helsinki Commission, I commend the ongoing role of VOA's Ukrainian service in helping Ukraine fulfill its aspirations in becoming more fully democratic, independent, and secure.

  • Twitter This

    The most interesting question President Obama fielded in China came over the Internet, via the U.S. Embassy, from a Chinese citizen who asked, "Do you know of the firewall? Should we be able to use Twitter freely?" In response, Mr. Obama, speaking at a town hall in Shanghai, did not directly address China's massive Internet censorship operation -- "the firewall" -- and he confessed that he does not use Twitter. But he said, "I'm a big supporter of not restricting Internet use, Internet access, other information technologies like Twitter." No doubt that's correct. And, just as likely, Mr. Obama is not aware that his State Department not only is doing next to nothing to support Internet freedom in countries such as China, but that it also has been slow-walking congressional initiatives to do so. For two years Congress has appropriated funds to support groups that are developing ways to circumvent the Chinese firewall and those erected in Iran, Burma, Cuba and other repressive countries. The most prominent of the groups, the Global Internet Freedom Consortium, says it has the capacity to host 1.5 million users daily. Its technology works: Shiyu Zhou, the deputy director of the consortium, testified to the U.S. Helsinki Commission last month that at the height of opposition protests on June 20, more than 1 million Iranians used the system. He said that with $30 million of additional funding, capacity could be increased to 50 million users a day, making it "prohibitively expensive for any repressive government to counter our efforts." A bipartisan coalition that includes Sens. Arlen Specter (D-Pa.) and Sam Brownback (R-Kan.) and Rep. Frank Wolf (R-Va.) has been trying to channel the necessary funding. A total of $20 million has been included in the past two State Department budgets, and $30 million more is pending in the Senate's version of the 2010 budget. But State hasn't passed the money on to the firewall-busters. Instead it gave the lion's share of its 2008 appropriation to a group that specializes in conducting media studies and training journalists, and it has failed to distribute the 2009 funds, even though the fiscal year ended nearly three weeks ago. The department says it is increasing the staff dedicated to working on Internet freedom issues and that it is funding some "implementing partners" that it won't identify. Still, no money is going to the one organization with a proven record of overcoming firewalls. The group's advocates suspect that that's because the Global Internet Freedom Consortium is identified with China's banned Falun Gong movement -- and State is fearful of Beijing's reaction to any U.S. support for it. The Obama administration has already done plenty to appease the Chinese regime. The least it can do is act on the president's own words about the value of free information -- and help give Chinese their chance to Twitter.

  • Violence and Impunity: Life in a Russian Newsroom

    This briefing evaluated the status of press freedom in Russia. For nearly a decade, Russia's once-vibrant independent media has lost ground to an increasingly authoritarian state and currently many of Russia's most promising journalists suffer routine harassment, or worse. This muzzling of the press is a clear violation of Russia’s international commitments. The inability of the media to play its important role in Russia is a threat to democracy with negative implications for U.S.-Russia relations. Top independent Russian journalists and a former senior Russian government official on Russia’s backsliding on press freedoms in recent years testified at this briefing to present their perspectives on this issue. The murders of Igor Domnikov, Anna Politkovskaya and Anastasia Baburina were cited to underscore what has become an environment of fear and intimidation within the Russian media. The international community was called upon to continue the discussion with Russia about the ongoing investigations into these murders.

  • U.S. Diplomats Rap Astana's Democratization Performance

    As Kazakhstan prepares to assume the chair of the Organization for Security and Cooperation in Europe, US diplomats are exerting pressure on Astana to enact promised reforms. Kazakhstan’s laws on media, elections and political parties continue to "fall short of OSCE standards," Philip Gordon, assistant secretary of state for European and Eurasian affairs, asserted in written testimony submitted for a hearing October 28 of the US Helsinki Commission. Gordon also pointed out in his testimony that "Kazakhstan has not held an election that the OSCE has deemed fully to have met OSCE commitments and international standards." Both Gordon and Michael Posner, the assistant secretary of state for democracy, human rights and labor, called attention to the case of Yevgeny Zhovtis, a human rights activist convicted in September for vehicular manslaughter. The trial was allegedly marred by procedural violations. Even so, a Kazakhstani judge rejected an appeal of the conviction. The US Helsinki Commission’s chair, Sen. Benjamin Cardin, a Democrat from Maryland, said the Obama administration and the State Department has given short shrift to human rights, adding that the issue of the OSCE summit in Kazakhstan presented an opportunity for the United States to take a strong stand on human rights.  

  • Why Tyrants Like Twitter

    When hundreds of thousands of Iranians took to the streets this summer to protest election results, headlines around the world anointed it the "Twitter Revolution." Iranians by the thousands Tweeted, Facebooked, blogged, video streamed and posted on scores of Web sites to share the events with the rest of the world, thwarting government attempts to censor coverage of the post-election violence. Twitter in particular appeared so powerful that the U.S. State Department even asked the micro-blogging service to delay a scheduled network upgrade to ensure Tweeting Iranians wouldn't lose access. But while Twitter and its new media cousins have given millions of people around the world the unprecedented ability to speak out and quickly organize against repressive governments, some experts caution that social media doesn't only benefit the social activists. "I'm not sure we understand the implications of building public spheres," said Evgeny Morozov, Yahoo! Fellow at Georgetown University's E.A. Walsh School of Foreign Service. New Media Empowers All Forces In a U.S. Helsinki Commission hearing on new media in authoritarian regimes, Morozov last week warned that new media "will power all political forces, not just the forces we like." Despite efforts to encourage the growth of pro-democratic groups online, he said research into the blogospheres in Egypt, Palestine and Russia suggest that the Muslim Brotherhood, Hamas and groups of Russian nationalists and fascists are among the most active users of blogs and social media. "Blind support for promoting blogging and social networking may have a lot of very unpleasant unexpected consequences," Morozov said. While it's true that governments may have lost some power to Internet-based modes of communication that empower many voices, he said authoritarian regimes have benefited from those same communication channels in other ways. "The Internet has made it much more effective and cheaper to spread propaganda," Morozov told ABCNews.com. New Media Can Give Appearance of Openness In Russia, the government befriends new media entrepreneurs who spin online conversation in the government's favor. The Chinese, Morozov said, have created a "50 cent party" composed of thousands of people across the country who get paid 50 cents for each comment they leave online. For some authoritarian governments, new media can be used to give the appearance of openness and legitimacy. In a piece written earlier this year for the human rights blog openDemocracy.org, Babak Rahimi, a professor of Iranian and Islamic Studies at the University of California, San Diego, wrote about the "politics of Facebook" in Iran. Part of the reason could be to encourage younger people to vote, thereby boosting electoral participation and signaling state legitimacy, Rahimi wrote. Another reason could be to identify dissenters. "By unblocking Facebook and creating a false sense of open and fair elections, the intelligence services are able to monitor the activities of dissidents who may feel more comfortable to express their views on Facebook," he wrote. But the primary reason, Rahimi continued, was so authorities could show off their strength as a legitimate power. "By conceding small amounts of liberty, the regime also hopes to gain approval for its 'progressive' nature," he said. Morozov said that new media has also made it easier for repressive regimes to identify dissenters. Instead of employing hundreds of people to read published material, rulers can automate the process with computers programmed to search for keywords. The Beijing-based TRS Information Technology, a search technology and text mining company, helps China control public opinion by using keywords to search for subversive content, the Financial Times reported earlier this year. A marketing manager for the company told the Financial Times that it was starting to sell services that allowed monitors to track comments and forecast public opinion. He also said police use the technology to focus attention on certain groups of people, such as university student forums. 'Cat and Mouse Thing' for Activists to Stay Ahead Though there are risks to opening up public spaces online, experts also say that with ongoing awareness of developments in new technology, progress is possible. During last week's Helsinki Commission hearing, Nathan Freitas, an adjunct professor with the Interactive Telecom Program at New York University and developer of technology for protests, said there are numerous stories of Chinese, Tibetan and other activists being monitored via Skype, Yahoo!, e-mail and other online tools. Still, he said that when activists protested for Tibetan independence during the 2008 Olympic games, China's efforts to block coverage didn't stop the protestors from broadcasting their activities. Digital video cameras, handheld computers and live streaming camera phones helped their protests succeed, Freitas said. "It's a cat and mouse thing, staying one step ahead," he told ABCNews.com. Activists need to stay on top of a government's technical capabilities as well as its overall priorities. And the best use of new media for activists changes from country to country. For example, given China's ambitious business aspirations, it can't block as much of the Internet as countries with more humble goals, Freitas said. But a government's grand plans can also provide exploitable opportunities. Although China may crack down on Skype, e-mail and other communication channels, because it wants to encourage small businesses, Freitas said devices like BlackBerries work well in China. "The irony of the world is that everyone wants a piece of the Internet commerce cookie? These countries are promoting the people getting computer science degrees, so you're seeing the rapid rise of intelligence and capabilities within the countries themselves," he said. "If you can find the loopholes that tie in technology with commerce, it's kind of a sweet spot."

  • Twitter Against Tyrants: New Media in Authoritarian Regimes

    Held after a year in which Twitter and Facebook catalyzed protest movements in Iran and Moldova and authoritarian regimes around the world unleashed new tools of Internet control, this briefing considered the ways in which new media and Internet communication technologies affect the balance of power between human rights activists and authoritarian governments. Panelists who spoke at this briefing focused on new media’s role in protests and elections, the ways in which it empowers civil society activists, and the darker side: how dictators use new technology to control and repress their citizens. The response of authoritarian regimes to the significant opportunities for advancing freedom through new media was addressed.  

  • Nigerian Oil Tycoons Jittery Over U.S. Bill on Corruption

    Nigerian oil tycoons and major oil exporting companies have developed cold feet over plans by the federal government to adopt and partner the United States on a new bill introduced by the U.S. The bills seeks among other things, to bring to book corrupt oil exporters. LEADERSHIP gathered yesterday that the Nigerian government through its embassy in the United States is already tracking the new legislation introduced late last month in the U.S that would require oil, gas and mineral companies traded on the U.S. stock exchange to publish details of their deals with foreign governments. The bill, according to reports will not be limited to American firms only, but would cover any foreign company that is traded on the U.S. exchange or raises capital in the U.S and is thus required to file SEC reports. Over 100 top oil companies would be affected by the bill designed to promote transparency, particularly in the oil industry, where corruption often keeps profits from trickling down to the local population. The legislation co-sponsored by Senators Ben Cardin, D-Md., Russ Feingold, D-Wis., Richard Lugar, R-Ind., Charles Schumer, D-N.Y., Sheldon Whitehouse, D-R.I., and Roger Wicker, R-Miss. Is already receiving international support, especially by oil exporting countries which cannot account for all the huge monies they earn from oil exports. Sarah Pray, the U.S. coordinator for Publish What You Pay, a coalition in 30 countries pushing for more accountability in extractive industries, was reported to have said that with the bill “Citizens can say, 'we saw you earned $7 billion last year, and we want you to manage it better,” Experts consider the new U.S bill very significant for countries like Nigeria which is listed at the bottom of the Berlin-based Transparency International's 2008 Corruption Perception index. Corruption and weak governance can dampen foreign investments, lead to poor industry management and fuel violence, particularly in Nigeria where there have been persistent crisis in its oil rich Niger Delta region leading to reductions in production and disabilities in global oil prices. Analysts say that Nigeria needs to monitor the new U.S bill on corrupt oil exports as it coincides with the Nigerian Petroleum Industry Bill (PIB). The Nigerian government had proposed a Petroleum Industry Bill expected to revive the entire oil and gas industry in the country. Considering the importance of Nigeria in the global oil and gas industry, and also its crumbling oil and gas industry, due to militant activities in the Niger Delta. The PIB has huge expectations attached with it as it is seen as a veritable avenue by the Nigerian government to restructure the oil and gas industry in the country and provide a lifeline to the indigenous oil sector. However, with the higher taxes and royalties in the proposed bill, the fiscal terms for the international oil companies have been made tougher. Whether the PIB will successfully bring to an end the militancy problem in the Niger Delta region and reposition Nigeria in the international oil and gas market remains skeptical. Nevertheless, on paper, the bill provides strategies and tools for the transformation of the Nigerian oil and gas industry to stand the test of time. Since 1956 when oil was first discovered in commercial quantity in oloibiri,in River State a huge revenue of over $400 billion accrued to the nation from petroleum exports. but this has not translated into physical development and most of Nigerians still live below poverty lines and this again underscores the need for Nigeria to evolve a strong law on its oil exports to ensure that revenues accruing to it from oil exports are ploughed back into the development of the country.

  • Ukraine Lauded for Nixing Hotel Near Babi Yar

    Two U.S. lawmakers hailed Ukraine for halting the construction of a hotel near the site of a Nazi massacre. Sen. Benjamin Cardin (D-Md.) and Rep. Alcee Hastings (D-Fla.) co-chair the Commission on Security and Cooperation in Europe, an agency charged with monitoring and encouraging compliance with the Helsinki Final Act and other commitments. "The city authorities of Kiev deserve credit for their rapid response to concerns from human rights and Jewish groups on this issue," Cardin, who last visited the memorial park in 2007, said last week. "I applaud their swift action to overturn the city council's insensitive decision and respect the memory of the victims at Babi Yar." The hotel was to be built close to the site of Babi Yar, a ravine near Kiev, where more than 33,000 people were murdered over a two-day period from Sept. 29, 1941. Half were children. Cardin also commended Ukrainian President Viktor Yushchenko for his pledge "to protect as a sacred spot the site of the Nazi massacre." Between September 1941 and 1943, some 150,000 people were executed by Nazi troops in wooded areas on the outskirts of Kiev. Most were Jews, but the total also included ethnic Ukrainians, Russians, Poles and Roma, or gypsies.  

  • The Western Balkans: Policy Responses to Today's Challenges

    This hearing reviewed the Vice President Biden’s meeting in Sarajevo and the Congressional delegation to Bosnia to speak about democratization process in the Balkan states. The Commissioners mentioned the need for governing bodies and systems that include every voice, particularly the ethnic communities in each country. These issues have correlated to potential instability in Bosnia resulting from the gridlock in government there.   The democratization and integration efforts, in relation to the Balkan joining closer to the greater European community and NATO, were touched upon to see the progress made.  The witness discussed examples of initiatives that moved the Balkans towards the goal of international standard of governance, for example the Model Court Initiative in Bosnia, which has helped to institute European standards in 33 local courts, upgrade court infrastructure and improve customer service.

  • Commission Plays Leading Role at Parliamentary Assembly in Lithuania

    By Robert A. Hand, Policy Advisor A bipartisan U.S. delegation traveled to Vilnius, Lithuania June 29 for the 18th Annual Session of the Organization for Security and Cooperation in Europe Parliamentary Assembly (OSCE PA). The delegation participated fully in the activity of the Assembly’s Standing Committee, the plenary sessions and the Assembly’s three General Committees. Helsinki Commission Chairman Senator Benjamin L. Cardin led the delegation, which included the following commissioners: Co-Chairman Congressman Alcee L. Hastings, Ranking Minority Member Chris Smith, and Senator Roger Wicker, Representatives Louise McIntosh Slaughter, Mike McIntyre, G.K. Butterfield and Robert B. Aderholt. Senate Assistant Majority Leader Dick Durbin, Senator George Voinovich and Representatives Lloyd Doggett, Madeleine Z. Bordallo and Gwen Moore also joined the delegation. Background of the OSCE PA The Parliamentary Assembly was created within the framework of the OSCE as an independent, consultative body consisting of more than 300 parliamentarians from each of the 56 countries, which stretch from the United States and Canada throughout Europe, the Caucasus and Central Asia. The Annual Sessions are the chief venue for debating international issues and voting on a declaration addressing human rights, democratic development, rule of law, economic, environmental and security concerns among the participating States and the international community. The United States delegation is allotted 17 seats in the Assembly. Robust Congressional participation has been a hallmark of the Parliamentary Assembly since its inception nearly 20 years ago, ensuring U.S. interests are raised and discussed. 18th Annual Session This year’s Annual Session, hosted by the Parliament (Seimas) of Lithuania from June 29 to July 3, brought together more than 500 participants from 50 of the 56 OSCE participating States under the theme: “The OSCE: Addressing New Security Challenges.” The Standing Committee -- the Assembly’s leadership body (composed of Heads of Delegations from the participating States and the elected officers) -- met prior to the Annual Session. Senator Cardin, as Head of Delegation and an OSCE PA Vice President, represented the United States. Chaired by the OSCE PA President, Portuguese parliamentarian João Soares, the committee heard reports from the Assembly’s Treasurer, German parliamentarian Hans Reidel, and from the Assembly’s Secretary General, R. Spencer Oliver of the United States. The Assembly continues to operate well within its overall budget guidelines and to receive positive assessments from auditors on financial management. The committee unanimously approved the proposed budget for 2009-2010. The Standing Committee also approved several changes in the OSCE PA’s Rules of Procedure, especially related to gender balance and the holding of elections for officers, as well as 24 Supplementary Items or resolutions for consideration in plenary or committee sessions. The committee brought up as an urgent matter a resolution regarding the detention of Iranian citizens employed by the British Embassy in Tehran. Senator Cardin spoke in support of the resolution. With the Standing Committee’s business concluded, Assembly President Soares opened the Inaugural Plenary Session, stressing in his opening remarks the need for OSCE reform. The first session concluded with a discussion of gender issues led by Swedish parliamentarian Tone Tingsgaard that included comments from Rep. Gwen Moore. A Special Plenary Session the next day was scheduled to accommodate the OSCE Chair-in-Office, Greek Foreign Minister Dora Bakoyannis, who had just presided over an informal meeting of OSCE foreign ministers in Corfu, Greece, to launch a new, high-level dialogue on European security. Senator Cardin attended the Corfu meeting as a representative of the OSCE Parliamentary Assembly. Following her speech, Bakoyannis engaged in a dialogue with parliamentarians on a number of OSCE issues. Lithuanian Foreign Minister Vygaudas Usackas also addressed the special session. Lithuania will chair the OSCE in 2011. U.S. Member Involvement The U.S. delegation actively participated in the work of the Assembly’s three General Committees – the first committee for Political Affairs and Security; the second for Economic Affairs, Science, Technology and the Environment; and the third on Democracy, Human Rights and Humanitarian Questions. Each committee considered its own draft resolution, prepared by an elected Rapporteur, as well as 23 of the 25 Supplementary Items. Two Supplementary Items, including one by President Soares on Strengthening the OSCE, were considered in plenary session. Representatives Chris Smith, Mike McIntyre, and Gwen Moore each proposed resolutions that were adopted dealing with freedom of expression on the Internet, international cooperation in Afghanistan, and prevention of maternal mortality respectively. Members of the U.S. delegation were also instrumental in garnering support for Supplementary Items introduced by others, co-sponsoring eight resolutions introduced by delegations of other countries. The U.S. delegation was responsible for 26 amendments to either the committee draft resolutions or various Supplementary Items. Chairman Cardin proposed climate-related amendments to a resolution on energy security and suggested the OSCE initiate work with Pakistan in the resolution on Afghanistan. Co-Chairman Hastings worked on numerous human rights and tolerance issues. Other amendments were sponsored by: Sen. Durbin on improving international access to clean water; Sen. Voinovich on combating anti-Semitism; Sen. Wicker on preserving cultural heritage; Rep. Smith on preventing the abuse of children; and Rep. Butterfield on responding to climate change. Bilateral Meetings The U.S. delegation also engaged in a variety of activities associated with the Annual Session, holding bilateral meetings with the delegations of Russia and Georgia focusing on their respective internal political developments and the tension in the Caucasus since Russia invaded Georgia last August and then sought to legitimize breakaway regions. Separate meetings were also held with Lithuanian President Valdas Adamkus and other Lithuanian leaders, at which the delegation pressed for new laws to resolve outstanding claims of property seized during the Nazi and Communist eras. The delegation also presented President Adamkus a letter from President Barack Obama on the occasion of the 1000th anniversary of the first written reference to Lithuania. Members of the U.S. delegation attended a working lunch to discuss gender issues, hosted by Swedish parliamentarian Tingsgaard. A variety of social events, including a reception hosted by the British delegation at their embassy, afforded numerous informal opportunities to discuss issues of common concern. U.S. Leadership As a demonstration of active U.S. engagement, a Member of the U.S. Congress has always held some elected or appointed leadership role in the OSCE PA. The Vilnius Annual Session has allowed this to continue at least through July 2012. Chairman Cardin was reelected to a three-year term as one of nine Vice Presidents, a very welcome development given his long record of OSCE engagement going back to his years in the House of Representatives. Rep. Aderholt, who has attended every OSCE PA Annual Session since 2002 and often visits European countries to press human rights issues, was elected Vice Chair of the third General Committee, which handles democracy and human rights. President Soares was reelected for a second term and selected Rep. Smith to serve as a Special Representative on Human Trafficking and asked Co-Chairman Hastings to continue serving as Special Representative on Mediterranean Affairs. An unfortunate development in the election of new officers is the absence of a representative of the Russian Federation. Because the United States government may disagree so substantively with current Kremlin policies, the U.S. government has always felt it critical to welcome Russian engagement in the OSCE PA. It was, therefore, a disappointment that the head of the Russian Federation delegation, Alexander Kozlovsky, reversed course and decided not to run for a Vice Presidency seat and more disappointing that a political bloc at the OSCE PA defeated Russian incumbent Natalia Karpovich as rapporteur of the Third Committee. Karpovich had been accommodating of U.S. human rights initiatives in her draft resolution. Vilnius Declaration Participants at the closing plenary session adopted the final Vilnius Declaration -- a lengthy document which reflects the initiatives and input of the U.S. delegation. Among other things, the declaration calls for strengthening the OSCE in order to enhance its legitimacy and political relevance; addresses conventional arms control, disarmament and other security-related issues of current concern in Europe; calls for greater cooperation in the energy sector and better protection of the environment; and stresses the continued importance of democratic development and respect for human rights, especially as they relate to tolerance in society and freedom of expression. The most contentious part of the declaration related to the promotion of human rights and civil liberties twenty years after the fall of the Berlin Wall, which included language noting the 70th anniversary of the Molotov-Ribbentrop Pact. While some of the language may have been provocative, strong Russian objections to the entire text appeared to be motivated by a desire to defend a Stalinist past and minimize its crimes. The Russian delegation’s effort to block passage of this resolution reflects a similar sentiment in Moscow that recently led to the creation of a widely-criticized commission "for counteracting attempts to falsify history to the detriment of Russia's interests." As a July 9 column for The Economist noted about recent Russian efforts to excuse Stalinism, the “debate in Vilnius makes it a bit harder to maintain that stance.” Some of Russia’s traditional friends and allies in the OSCE PA were noticeably absent from the debate. The Balkans While the Congressional delegation’s work focused heavily on representing the United States at the OSCE PA, the trip afforded an opportunity to advance U.S. interests elsewhere in Europe. While Co-Chairman Hastings traveled to Albania to observe that country’s first parliamentary elections since becoming a NATO member earlier this year, the rest of the delegation visited Bosnia-Herzegovina. Bosnia-Herzegovina is still recovering from the conflict in the 1990s and the associated horrors of the Srebrenica genocide and massive ethnic cleansing. The reverberations of the conflict continue to hinder prospects for European and Euro-Atlantic integration. The United States was instrumental in bringing the Bosnian conflict to an end in 1995, especially with the negotiation of the Dayton Agreement, and the United States has invested considerable financial, diplomatic and military resources in the post-conflict period. The visit came one month after Vice President Joe Biden visited Sarajevo with a message of renewed U.S. engagement in the Balkans. While meetings with Bosnian political leaders revealed little willingness to work constructively toward constitutional reform needed for an effective central government, a meeting with English-speaking university students revealed a refreshing desire to overcome ethnic divisions and move the country forward. Belarus Given its proximity to Vilnius, members of the Congressional delegation visited Minsk, the capital of Belarus, to press for greater democracy and respect for human rights in that country. Belarus has remained a repressive state over the years even as its European neighbors have transitioned from being former Soviet or Warsaw Pact states to EU and NATO members or aspirants. Following a delegation meeting with President Alexander Lukashenka, Belarusian authorities released imprisoned American Emanuel Zeltzer, who was convicted of espionage in a closed trial and had numerous health concerns. The delegation also urged for greater progress in meeting the conditions in the Belarus Democracy Act passed by the U.S. Congress in 2004 and reauthorized in 2006. A meeting with political activists provided useful information on the situation for political opposition, non-governmental organizations and independent media. Finally, the delegation pressed Belarus’ officials to allow for an increased U.S. diplomatic presence in the country. In response to expanding U.S. sanctions, Minsk kicked out 30 diplomats last year, including the U.S. ambassador, leaving a staff of five at the U.S. Embassy. During the course of the Vilnius Annual Session, Senator Voinovich also broke away for a brief visit to Riga, Latvia. That visit was among the highest level visits from a U.S. official in three years, and was important for our relations with this NATO ally, which has deployed troops with Americans in Afghanistan without caveat and recently suffered losses which easily impact such a small country. U.S. interests abroad are advanced through active congressional participation in the OSCE PA. The 19th Annual Session of the OSCE Parliamentary Assembly will be held early next July in Oslo, Norway.

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