More corruption for more development?

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By TP


The Law of Corrupt Practices abroad (FCPA) was promulgated in 1977 in the United States to fight corruption, protect the reputation of US companies and promote transparent competition and reliability and solidity in markets. The corrupt practices of US companies abroad, being the most notorious case of bribes paid by Lockheed Corporation, ended up in the issuance of the FCPA Law. Some subsequent cases notorious of the FCPA application involved the German Siemens AG, KBR and Halliburton in the United States and the French oil company Total SA, among others.The FCPA mainly addresses corruption and bribery to foreign officials. It has two main provisions: first, the anti -border standards, which prohibit people, American companies and certain foreign emitters of values ​​to bribe government officials abroad, including international organizations, to obtain or conserve businesses or achieve some improper advantage. Likewise, in financial matters, it forces companies that quote on the stock market to maintain books, records and accurate accounts that reflect transactions truthfully. The representatives of the companies that incur these practices, thus abroad or through third parties, are responsible before the law. It is not chance that the FCPA is concentrated in the companies registered in the stock market and that the Commission of the Securities Market ( Sec) – In addition to the Department of Justice – play a central role. It seeks to protect the integrity and transparency of the United States stock market and try to keep the companies registered outside corrupt practices and their consequent scandals and financial and corporate effects. TWO WEEKS, President Donald Trump issued a decree in which It orders the attorney general, Pam Bondi, to suspend the actions that are being carried out under the FCPA until new application guides are written, which They promote the competitiveness of the United States and efficient use of resources for the application of the law. The White House also ordered to review the processes under the FCPA, past and in progress, and that future investigations are governed by the new rules of the Department of Justice. Although in theory it should work with some independence, in this case it is expected absolute obedience, which is not new. So it has happened in repeated opportunities, as analyzed by Yale's University at the Yale Law & Policy Review: among other cases, William P. Rogers, Dwight Eisenhower Attorney, who dedicated partisan campaign for vice president Richard Nixon from his office; Bobby Kennedy, who was handled by the Prosecutor's Office as a family reunion to defend John, his brother-president and his Democratic government; Trump himself fired the prosecutor in charge of Sally Yates for «insubordination» in his first government, just 10 days after having possessed as a president. If Pam Bondi blindly defends the president's thesis and acts without balances, it will be the next of many chapters of controversial actions of that office. Trump's decree comes from the concern that other countries incur corrupt practices and thus They obtain contracts to the detriment of the proponents of the United States. And surely, in many cases it is so. That is why he considers that if others will incur these practices, the United States will also do the same and consider them «common among international competitors.» In other words: if you cannot against them, join the FCPA a federal law, it cannot be repealed by the president, but can regulate its application. Although it sounds trivial, it is good to remember that the legislative branch makes the laws, the executive regulates and executes them and the judicial judges those who do not fulfill them. Many questions. How far can the Executive go in the regulation of a federal law? Can regulations contradict the spirit of the law that is regulating? Can the president order that the Department of Justice not fulfill their duty? Can the Department of Justice simply not apply a federal law? Is it possible that the powerful SEC, in charge of the surveillance of the companies registered in the stock market, either? How are bribes to register the bribes? In addition to the institutional and legal disorder that this generates, do the public official who deliberately breached the rules to be enforced? And finally, who will dare to violate the law now, if the next government can re -interpret it and regulate it, but in the opposite direction? FCPA as Federal Law will be the same, unless Congress modifies it, which will hardly happen. And we will see what Bondi contains will issue in just over five months, as Trump asked. All this is a bad thing for Latin America. Unfortunately, one of Latin America's great evils is corruption. In the last International Transparency Report of 2024, in which countries are listed less to more corrupt, except Uruguay, all of Latin America is below 50 points, that is, in the middle of the most corrupt. Our region has seen For many years to the United States – with its virtues and its defects – as a reference whose influence in many fields such as the political, economic and cultural, it is indisputable. We will begin to see our analysts applauding as seals on social networks and explain with forceful arguments of a single phrase that, which lacked the region to achieve development, was more corruption.