When the former Costa Rican president and
ex-secretary general of the Organization of American States Miguel Angel
Rodriguez exited from an airplane in handcuffs earlier this month, Costa
Ricans could not help but have mixed emotions.Their country, long deemed a bastion of honesty amid a wasteland of
corruption, was embarrassed as Rodriguez was carted away, accused of
taking kickbacks just like many of his Latin American colleagues have
been accused of taking for years.
"Of course I am suffering," current Costa Rican President Abel
Pacheco said. "But I feel very proud that Costa Rica is a democracy that
functions. Costa Rica is an example for the world."
Well, if not the world, at least Latin America, where from Brazil to
Guatemala, Haiti to Mexico, high-level corruption seems to be
crisscrossing the region like a cigarette boat these days.
In all, 20 presidents and ex-presidents from 14 countries in Latin
America have been charged with corruption since 1990. Five were kicked
from or fled their offices before finishing their terms. One was
convicted and is serving a 20-year sentence, and two are in jail
awaiting trial; others may be served with international arrest warrants
any day now. At least nine are still enmeshed in legal battles.
The accused run the political gamut, and the charges have ranged from
kickbacks to money laundering. But the theme is the same: No one is
immune from the temptation of corruption and the prosecution that may
follow.
Which begs the question: Is corruption in Latin America worse now, or
are these politicians simply getting caught more often? Analysts say it
may be a bit of both.
The region has gone through massive economic and political upheaval
in recent years. Democracies have emerged in place of military regimes,
markets have opened and state industries have privatized. The flood of
foreign capital has made for some hefty temptations.
"These places are totally corrupt because they have no capital
markets. They have no institutions to monitor these privatizations,"
said Bruce Bagley, a University of Miami political science professor.
Former Costa Rican President Rodriguez, for example, is accused of
taking money from the French telecommunications company Alcatel, which
won a government contract for 400,000 cellular telephone lines.
At the same time, however, a surge in democratic governments
throughout the region has provided for more accountability, analysts
say. Scrutiny by watchdog groups and an increasingly independent news
media have unearthed more scandals.
Costa Rica is a particularly troubling case because of its
squeaky-clean reputation. Last month, when the watchdog group
Transparency International released its annual corruption perception
index, most Latin American countries scored poorly, with Haiti and
Paraguay leading the way. Costa Rica was perceived as the third least
corruptible country in Latin America behind only Chile and Uruguay, a
rating that seems to belie the truth.
This week, former Costa Rican president and current executive
director of the Swiss-based World Economic Forum Jose Maria Figueres
admitted taking up to $900,000 in dubious consulting fees from the same
French telecommunications company as Rodriguez. Another former Costa
Rican president, Rafael Angel Calderon, is in jail awaiting trial for
allegedly accepting a kickback from a Finnish government loan destined
for the purchase of medical equipment. And current President Pacheco is
under investigation for not reporting hundreds of thousands of dollars
in campaign contributions from Taiwan.
"Costa Rica has always gotten better press than it deserves,"
observed Larry Birns, the director of the Council on Hemispheric Affairs
in Washington, D.C.
Economics may be one factor that drives countries like Costa Rica to
hide the truth.
"Costa Rica depends a lot on tourism and doesn't want to be painted
in the same light as its neighbors," said Stephen Johnson, a Latin
American specialist for the Heritage Foundation. "When corruption
surfaces, there's a reticence to deal with it because people think that
if you deal with it and let these kinds of things surface, then it's bad
news for the country."
There is hope. The U.S. government, which analysts say often
overlooked corruption, seems to be taking a particular interest in
cleaning up graft abroad for both economic and national security
reasons. In addition to recent legislation that led to revoking visas
and freezing the U.S. assets of foreign officials suspected of
corruption, Washington issues stiff penalties to U.S. companies that
engage in corruption.
"If there's one thing that American companies want to avoid like the
plague, it's charges of corruption," said Arturo Valenzuela, a former
Clinton administration expert on Latin America.
"Increasingly, investors actually want clear rules of the game. ...
American companies take a huge risk if they go against the Foreign
Corrupt Practices Act," he said.
Both Valenzuela and Johnson see the recent revelations in a positive
light.
"It may look like an epidemic of corruption, but it may be the
reverse; it may be a sign of the strengthening of these democratic
institutions and that's a good thing," Johnson said.
Other analysts are not so optimistic.
"There's no clarity with regard to the mechanisms or recipes" to
resolve the crisis created by the scandals, said Fernando Cepeda, a
Colombian economist at the University of the Andes in Bogota. "Everyone
continues to flail in the wind."