At the World Bank, we recognize corruption as a major obstacle in the fight against extreme poverty and inequality in our client countries. Corruption often involves stealing public funds which could have been used to provide schools, hospitals and clean water for citizens. Rampant corruption also discourages private sector investment, thereby reducing economic growth. Therefore, the fight against corruption is also a fight against poverty.
The joint World Bank /UNODC Stolen Asset Recovery Initiative (StAR) is central to the fight against corruption. By recovering stolen assets and resources and returning them to the rightful owners, it ensures that a country’s wealth is shared by all and sends the signal that there is no safe haven for the proceeds of corrupt activities.
We are glad to see that China has made asset recovery one of the key objectives of its leadership of the Anti-Corruption and Transparency Working Group of the Asia-Pacific Economic Cooperation Forum (APEC). I am very much encouraged by the comments of the Minister of Supervision, Mr. Huang Shuxian, regarding China’s recent substantial efforts in their fight against corruption. The presence of all of you here today is further testimony to the determination of APEC member countries to leave no stone unturned in their fight against corruption and to right the wrongs that corruption causes.
The principle that proceeds of corruption should be returned to the countries of origin is laid down in the 2005 UN Convention against Corruption. As the Convention also clearly indicates, international cooperation is vital for asset recovery to happen.
We all know that Treaties and international standards are very important in establishing international cooperation. However, it is also essential to have the necessary legal and institutional infrastructure in place, so that information can flow freely between countries. StAR has been working hard in this regard, helping countries to strengthen domestic coordination, through the drafting of legislation and regulations and establishment of relevant institutions.
Ultimately, I think the most important role of StAR lies in its convening power, bringing together policy makers and topic experts and facilitating open and candid dialog among all stakeholders. Such open discussions will go a long way in identifying obstacles to the successful recovery of stolen assets and working together to overcome those obstacles.
We hope that the lessons and experiences emerging from today’s discussions will inform the direction and policies of APEC more generally, improving collaboration on cases and enhancing the sharing of necessary intelligence and evidence. I also fully support and very encouraging Minister Shuxian’s recommendations on deepening anti-corruption related cooperation.
The task of recovering stolen assets is challenging and should not be underestimated. Conservative estimates indicated that between twenty and forty billion dollars (US) is lost each year to public corruption. So far, by StAR’s estimates, countries have only been successful in recovering roughly five billion dollars. This shows that a lot still needs to be done. I am however encouraged by the increasing sense of urgency felt all over the world that public corruption should be tackled vigorously in all its dimensions. Recent action from the G8, the G20 and the OECD is unprecedented.
While it is sometimes easy to get discouraged, we should remember the words of the great Confucius who said: “Our greatest glory is not in never falling, but in rising every time we fall.”
There is a long and arduous road ahead but StAR stands ready to support China and all APEC members in all ways possible to facilitate international cooperation for the eventual repatriation of stolen funds.
The above text is taken from remarks given by Mr. Tunc Uyanik at the opening of an APEC workshop on International Recovery of the Proceeds of Corruption in Ningbo, China in February 2014.
Tunc Uyanik is Director, Financial and Private Sector Development, East Asia and Pacific Region and Financial Systems Global Practice, World Bank