Anti-Corruption Working Group
The Anti-Corruption Working Group has considered corruption risk issues across the four
B20 taskforces: financing growth, trade, infrastructure & investment, and human capital. The group
has developed recommendations that address each of the taskforce areas of focus, and has also
put forward separate overall recommendations that cut across each of the taskforces and impact
the global economy as a whole.
If corruption were an industry, it would be the world’s third largest, worth more than $3 trillion and
5 percent of global GDP. According to the OECD, corruption is a major obstacle to sustainable
economic, political and social development as it:
- increases the cost of doing business;
- decreases cross border investment and trade facilitation;
- generates waste and inefficiency in the use of public resources;
- excludes the poor from public services and perpetuates poverty; and
- corrodes public trust, undermines the rule of law and ultimately delegitimizes the state.
Corruption is a problem for developed and emerging economies alike. Many countries expected to drive future global economic growth score poorly in Transparency International’s Corruption Perceptions Index. For business, entering new markets, and even entering into routine cross-border business dealings, can be fraught with regulatory and compliance risk. With a changing regulatory landscape, even the most well intentioned companies struggle to comply with the sheer volume of regulation and complexity across and within jurisdictions.
Just as there are differences in the way that regulators and enforcement agencies deal with corruption, businesses vary in their approach to eradicating corruption from their culture and supply chains. Acknowledging and incentivising business to act responsibly is important to reduce the supply of corruption. At the same time, business wants to see a concerted effort to enforce existing laws that reduce the demand for corruption, building capacity for integrity and penalising corruption in public office.