Financial Crime and Corruption by Samuel Vaknin
7. Does the NGO own or run commercial enterprises? If it
1908 words | Chapter 77
does, it is a corrupt and compromised NGO involved in
conflicts of interest.
Q. The way you describe, many NGO are already more
powerful and politically influential than many
governments. What kind of dangers this elicits? Do you
think they are a pest that need control? What kind of
control would that be?
A. The voluntary sector is now a cancerous phenomenon.
NGOs interfere in domestic politics and take sides in
election campaigns. They disrupt local economies to the
detriment of the impoverished populace. They impose
alien religious or Western values. They justify military
interventions. They maintain commercial interests which
compete with indigenous manufacturers. They provoke
unrest in many a place. And this is a partial list.
The trouble is that, as opposed to most governments in the
world, NGOs are authoritarian. They are not elected
institutions. They cannot be voted down. The people have
no power over them. Most NGOs are ominously and
tellingly secretive about their activities and finances.
Light disinfects. The solution is to force NGOs to become
both democratic and accountable. All countries and
multinational organizations (such as the UN) should pass
laws and sign international conventions to regulate the
formation and operation of NGOs.
NGOs should be forced to democratize. Elections should
be introduced on every level. All NGOs should hold
"annual stakeholder meetings" and include in these
gatherings representatives of the target populations of the
NGOs. NGO finances should be made completely
transparent and publicly accessible. New accounting
standards should be developed and introduced to cope
with the current pecuniary opacity and operational double-
speak of NGOs.
Q. It seems that many values carried by NGO are
typically modern and Western. What kind of problems
this creates in more traditional and culturally different
countries?
A. Big problems. The assumption that the West has the
monopoly on ethical values is undisguised cultural
chauvinism. This arrogance is the 21st century equivalent
of the colonialism and racism of the 19th and 20th
century. Local populations throughout the world resent
this haughty presumption and imposition bitterly.
As you said, NGOs are proponents of modern Western
values - democracy, women's lib, human rights, civil
rights, the protection of minorities, freedom, equality. Not
everyone finds this liberal menu palatable. The arrival of
NGOs often provokes social polarization and cultural
clashes.
XLVII. Quis Custodiet Ipsos Custodes?
Who is Guarding the Guards in Countries in Transition from Communism?
Written: August 23, 1999
Izetbegovic, the nominal president of the nominal Bosnian
state, the darling of the gullible western media, denies that
he and his cronies and his cronies' cronies stole 40% of all
civilian aid targeted at Bosnia - a minor matter of 1 billion
US dollars and change, in less than 4 years. The tribes of
the Balkans stop bleeding each other to death only when
they gang up to bleed another. In this, there are no races
and no traces - everyone is equal under the sign of the
dollar. Serbs, Bosnians and Croats divided the loot with
the loftiest of egalitarian instincts. Honour among thieves
transformed into honour among victims and their
murderers. Mammon is the only real authority in this god
forsaken, writhing rump of a country.
And not only there.
In Russia, billions (3 to 5) were transferred to secret off
shore bank accounts to be "portfolio managed" by
mysterious fly-by-night entities. Many paid with their jobs
when the trail led to the incestuous Yeltsin clan and their
byzantine court.
Convoys snake across the mountainous Kosovo, bringing
smuggled goods at exorbitant prices to the inhabitants of
this parched territory - all under the avuncular gaze of
multinational peacekeepers.
In Romania, Hungary and Greece, UN forces have been
known to take bribes to allow goods into besieged Serbia.
Oil, weapons and strategic materials, all slid across this
greasy channel of the international brotherhood of cash.
A lot of the aid, ostensibly intended to ameliorate the state
of refugedom imposed upon the unsuspecting, harried
population of Kosovo - resurfaced in markets, white and
black, across the region. Food, blankets, tents, electrical
equipment, even toys - were on offer in bazaars from
Skopje to Podgorica and from Sofia to Thessaloniki,
replete with the stamps of the unwitting donors. Aid
workers scurried back and forth in expensive utility
vehicles, buzzing mobile phones in hand and latest model,
officially purchased, infrared laptops humming in the air
conditioned coolness of their five star hotel rooms (or
fancy apartments). In their back pockets they safeguarded
their first class tickets (the food is better and the
stewardesses ...). The scavengers of every carnage, they
descended upon this tortured land in redundant hordes,
feeding off the misery, the autoimmune deficiency of the
syndrome of humanism.
Ask yourselves: how could one of every 3 dollars - 50%
of GNP - be stolen in a country the size of a tiny
American state - without the knowledge and collaboration
of the international organizations which ostensibly
manage this bedlam? Why did the IMF renew the credit
lines to a Russia which cheated bold-facely regarding its
foreign exchange reserves? How was Serbia awash and
flush with oil and other goods prohibited under the terms
of the never-ending series of embargoes imposed upon it?
The answer is that potent cocktail of fear and graft. First
came fear - that Russia will collapse, that the Balkans will
spill over, that Bosnia will disintegrate. Nuclear
nightmares intermingled with Armenian and Jewish
flashbacks of genocide. The west shut its eyes tight and
threw money at the bad spirits of irredentism and re-
emergent communism. The long arm of the USA, the
"international" financial institutions, collaborated in
constructing the habit forming dole house that Eastern and
Southern Europe has become. This conflict-reticence,
these approach-avoidance cycles led to an inevitable
collusion between the ruling mob families that pass for
regimes in these parts of the planet - and the unilateral
institutions that pass for multilateral ones in the rest of it.
An elaborate system of winks and nods, the sign language
of institutional rot and decaying governance, took over.
Greasy palms clapped one another with the eerie silence
of conspiracy. The world looked away as both -
international financial institutions and corrupt regimes -
robbed their constituencies blind. This was perceived to
be the inevitable moral cost of stability. Survival of the
majority entailed the filthy enrichment of the minority.
And the west acquiesced.
But this grand design backfired. Like insidious bacteria,
corruption breeds violence and hops from host to host. It
does not discriminate, this plague of black conscience,
between east and west. As it infected the indigenous, it
also effected their guardians. They were all engulfed by
raging greed, by a degradation of the inhibitions and by
the intoxicating promiscuity of lawlessness. Inebriated by
their newly found powers, little ceasars - natives and
financial colonialists - claimed their little plots of crime
and avarice, a not so secret order of disintegration of the
social fabric. A ghoulish landscape, shrouded in the
opaque mist of the nomenclature, the camaraderie of the
omnipotent.
And corruption bred violence. The Chicago model
imported lock, stock and the barrel of the gun. Former
cronies disappeared mysteriously, bloated corpses in stale
hotel rooms - being the only "contracts" honoured.
Territories were carved up in constant, unrelenting
warfare. One billion dollars are worth a lot of blood and it
was spilled with glee, with the enthusiasm of the
inevitable, with the elation of gambling all on a single
spin of the Russian roulette.
It is this very violence that the west tried to drown with its
credits. But unbeknownst to it, this very violence thrived
on these pecuniary fertilizers. A plant of horrors, it
devoured its soil and its cultivators alike. And 120,000
people paid with their lives for this wrong gamble.
Counting its losses, the west is poised to spin the wheel
again. More money is amassed, the dies are cast and more
people cast to die.
XLVII. The Honorary Academic Higher Education for Sale
In Countries in Transition from Communism
Mira Markovic is an "Honorary Academic" of the Russian
Academy of Science. It cost a lot of money to obtain this
title and the Serb multi-billionnaire Karic was only too
glad to cough it up. Whatever else you say about Balkan
cronies, they rarely bite the hand that feeds them (unless
and until it is expedient to do so). And whatever else you
say about Russia, it adapted remarkably to capitalism.
Everything has a price and a market. Israel had to learn
this fact the hard way when Russian practical-nurse-level
medical doctors and construction-worker-level civil
engineers flooded its shores. Everything is for sale in this
region of opportunities, instant education inclusive.
It seems that academe suffered the most during the
numerous shock therapies and transition periods showered
upon the impoverished inhabitants of Eastern and Central
Europe. The resident of decrepit communist-era buildings,
it had to cope with a flood of eager students and a deluge
of anachronistic "scholars". But in Russia, the CIS and the
Balkans the scenery is nothing short of Dantesque.
Unschooled in any major European language, lazily
content with their tenured positions, stagnant and formal -
the academics and academicians of the Balkans are both
failures and a resounding indictment of the rigor mortis
that was socialism. Economics textbooks stop short of
mentioning Friedman or Phelps. History textbooks should
better be relegated to the science fiction shelves. A brave
facade of self sufficiency covers up a vast hinterland of
inferiority complex fully supported by real inferiority. In
antiquated libraries, shattered labs, crooked buildings and
inadequate facilities, student pursue redundant careers
with the wrong teachers.
Corruption seethes under this repellent surface. Teachers
sell exams, take bribes, trade incestuous sex with their
students. They refuse to contribute to their communities.
In all my years in the Balkans, I have yet to come across a
voluntary act - a single voluntary act - by an academic.
And I have come across numerous refusals to help and to
contribute. Materialism incarnate.
This sorry state of affairs has a twofold outcome. On the
one hand, herds of victims of rigidly dictated lectures and
the suppression of free thought. These academic products
suffer from the twin afflictions of irrelevance of skills and
the inability to acquire relevant ones, the latter being the
result of decades of brainwashing and industrial
educational methods. Unable to match their anyhow
outdated knowledge with anything a modern marketplace
can offer - they default on to menial jobs, rebel or pull
levers to advance in life. Which leads us to the death of
meritocracy and why this region's future is behind it.
In the wake of the downfall of all the major ideologies of
the 20th century - Fascism, Communism, etc. the New
Order, heralded by President Bush, emerged as a battle of
Open Club versus Closed Club societies, at least from the
economic point of view.
All modern states and societies must choose whether to be
governed by merit (meritocracy) or by the privileged few
(oligarchy). It is inevitable that the social and economic
structures be controlled by elites. It is a complex world
and only a few can master the knowledge it takes to
govern effectively. What sets meritocracy apart is not the
number of members of its ruling (or leading) class,
usually no larger than an oligarchy. No, it is distinguished
by its membership criteria and by the mode of their
application.
The meritocratic elite is an open club because it satisfies
three conditions:
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