The best system money can buy corruption in the european union

THE BEST SYSTEM MONEY CAN BUY THE BEST SYSTEM MONEY CAN BUY Corruption in the European Union Carolyn M Warner CORNELL UNIVERSITY PRESS ITHACA AND LONDON Copyright © 2007 by Cornell University All rights reserved Except for brief quotations in a review, this book, or parts thereof, must not be reproduced in any form without permission in writing from the publisher For information, address Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850 First published 2007 by Cornell University Press Printed in the United States of America Library of Congress Cataloging-in-Publication Data Warner, Carolyn M., 1961– The Best system money can buy : corruption in the European Union / Carolyn M Warner p cm Includes bibliographical references and index ISBN 978-0-8014-4555-2 (cloth : alk paper) Political corruption—European Union countries Corruption— European Union countries Misconduct in office—European Union countries Commercial crimes—European Union countries I Title JN94.A56C69 2007 364.1؅323094—dc22 2007010664 Cornell University Press strives to use environmentally responsible suppliers and materials to the fullest extent possible in the publishing of its books Such materials include vegetable-based, low-VOC inks and acid-free papers that are recycled, totally chlorine-free, or partly composed of nonwood fibers For further information, visit our website at www.cornellpress.cornell.edu Cloth printing 10 Dedicated to the memory of Ruth Elaine Norberg Warner (1926 –2005) Contents Preface and Acknowledgments List of Abbreviations Introduction ix xv 1 Corruption Dynamics in the European Union 14 Does Competition in the European Union Corrupt? 30 “Corruption Is Our Friend”: Exporting Graft in Infrastructure, Arms, and Oil The Myth of the Market: Privatization 54 85 Decentralization, Democracy, and Graft 107 The Corruption of Campaign and Party Financing 135 The Pathologies of an International Organization 159 The European Union, the International Political Economy, and Corruption 175 Appendix 1: Key Dead Men 191 Appendix 2: Brief 195 Appendix 3: Notes Index Survey of the European Union The Major Institutions of the European Union 197 199 247 Preface and Acknowledgments Work on this book began with a naive question about what happens when countries with different patterns of corruption become members of an international free trade organization When Edith Cresson, a French commissioner in the European Union (EU), hired an old friend to be her adviser on a project, was she importing French hiring practices into the EU or merely behaving as any administrator would, given the structure of the EU? When Greece’s deputy finance minister Nikos Athanassopoulos was involved in (and convicted of) illegally selling cheap Yugoslavian corn in the EU as subsidized Greek corn, had he merely brought the corrupt practices of his country to the international organization or was he responding creatively to new opportunities?1 Seeing the point spread of EU countries in Transparency International’s now famous Corruption Perceptions Index made me wonder whether countries brought their local patterns of fraud and corruption into international organizations and whether there was convergence of these patterns within such an organization The EU has gone far beyond being a free trade area, but this question of what happens to patterns of corruption in different countries when these countries join an international organization lies at the base of my inquiry This inquiry began to reveal that corruption was tied to competition—that is, to efforts to evade and best the competition, whether political or economic Competition had long been considered one of the remedies for corruption; now it seemed to be one of the causes I found more cases of corruption than I expected, and they were occurring in countries that were wealthy, Western, democratic, and members and chief movers of an integrated, transnational single market—the European Union This book is not an essay merely about corruption within EU institutions nor a study of fraud involving the EU budget It does not cover corruption in the post2004 accession countries—much of the former Eastern bloc, Malta, and Cyprus My interest is in corruption in countries where it isn’t expected, and in the role of the EU and the policies that directly and indirectly accompanied integration Corruption takes many forms; this book, as a first cut at the topic of corruption patterns in the EU, focuses on bribery, kickbacks, and extortion among politicians, bureaucrats, and firms As I make clear, firms often bribe because they perceive that politicians or parties have demanded the bribe This book is a modest attempt to raise a flag about relying on competition, privatization, decentralization, and campaign finance regulations as a way to reduce corruption It is also x PREFACE AND ACKNOWLEDGMENTS an effort to assess the limits of the EU in affecting corruption Readers will find that the EU’s impact is less than we might have expected The book contains two chapters I did not anticipate writing In the course of my research I discovered that numerous cases of corruption in Europe were connected to overseas bribery and that the connection seemed not to be accidental Hence, there is a chapter on “export-led” corruption Further, most of the cases in Europe were connected to party and campaign finance, which led me to investigate the relationship between spending caps, donation caps, public financing, and corruption Nor did I expect to find that the subject of the book had manifestations close to home in Arizona I live approximately four miles from Paradise Valley, where Pierre Falcone, an arms dealer pursued by the French, has a mansion (which he has not used recently due to an international arrest warrant) I also live about twenty miles from Sun City, where Paul Marcinkus (1922–2006) was transferred to appease Italian legal authorities after the Banco Ambrosiano/ Vatican Bank scandal, which left one banker, Roberto Calvi, hanging from under Blackfriars Bridge in London, and another, Marcinkus, conducting mass for retirees in Arizona I not advocate massive repressive efforts to eliminate corruption One thing the book shows is that regulatory practices of any sort often produce problems similar to those they were trying to solve Furthermore, I have a strong bias toward civil liberties, which are often casualties of draconian anticorruption laws and enforcement I make no claim to having a definitive theory of corruption, nor to having all the evidence necessary to back up such a theory The cases are limited to those exposed by investigating judges, journalists, nongovernmental organizations, and parliamentary inquiry commissions The allegations described in the book come from reputable sources They not necessarily mean that those accused are guilty, but they highlight possible patterns of corruption Where feasible, I have followed up on the initial judicial or police proceedings, on which press accounts were usually founded, with court decisions and government reports This book would not exist were it not for significant financial support, a year’s sabbatical at the European University Institute, a year at the Hoover Institution, and several summers at the Center on Democracy, Development and the Rule of Law at Stanford University Specifically, the field research was supported by a Harvard University Minda de Gunzburg Center for European Studies research travel grant, by a National Science Foundation Professional Opportunities for Women in Research and Education grant (NSF POWRE no SES-0074977), a Jean Monnet Fellowship at the European University Institute (EUI), a year at the Hoover 242 NOTES TO PAGES 170 – 173 of Community law, under which Community money belongs in effect to all Member States.” House of Lords, Fraud against the Community, 30; Ronen Palan, The Offshore World (Ithaca: Cornell University Press, 2003) 41 John Spencer, uncorrected transcript of “File on 4-EU Fraud,” British Broadcasting Corporation, Radio 4, Current Affairs Group, transmission of 26 July 2005, no 05VY3022LHO, http://news.bbc.co.uk/nol/shared/bsp/hi/pdfs/26_07_05_eu_fraud.pdf 42 Some officials in the EU’s Competition and Internal Market divisions have said that the states generally act in good faith, although on occasion states may be “economic” with the facts they report to the Commission and that most cases of noncompliance are not “political” or related to fraud or corruption but to misunderstandings or different interpretations of directives Author interviews, DG Competition, DG Internal Market, Brussels, Feb 2001 43 Mark A Pollack, “Delegation, Agency and Agenda Setting in the European Community,” International Organization 51/1 (Winter 1997): 99–134 44 Ian Harden, Fidelma White, and Katy Donnelly, “The Court of Auditors and Financial Control and Accountability in the European Community,” European Public Law (Winter 1995): 599 – 632 45 George Parker, “Suspended EU chief accountant fears dismissal for her public allegations,” Financial Times, 30 Sept 2004 46 “European Commission: Andreasen Sacked for Whistleblowing,” European Report, 16 Oct 2004; Frank Fitzgibbon, “Shoot the messenger,” Sunday Times, Oct 2004 47 Murray Ritchie, “Whistleblower returns to face his former Euro chiefs,” Herald (Glasgow), 28 Apr 2003; Doreen Carvajal,“The value of blowing the whistle,”International Herald Tribune, 23 June 2004 48 “Budget: Anti-fraud unit backs court action against former EU auditor,” European Report, 13 Nov 2002; Murray Ritchie, “I was right,” Herald (Glasgow), 25 Oct 2002 49 Committee of Independent Experts, First Report on Allegations regarding Fraud; Gail Edmondson, “The Fighting Dutchman,” Business Week, 26 July 2004 50 Romano Prodi, “Eurostat and the OLAF Action Plan,” 5; “Communication to the Commission from Vice President Kinnock in agreement with the President, Mr Solbes and Ms Schreyer Subject: Eurostat enquiries,” Commission: 18.11.2003 SPEECH/03/551, 1– 2; “Questions and Answers by Mr Solbes,” COCOBU (Commission du Contrôle Budgétaire), 17 June 2003; “Questions and Answers by Mrs Schreyer,” COCOBU, 17 June 2003, All are from Press Releases on Eurostat, http://ec.europa.eu/archives/commission_ 1999_2004/schreyer/en/ms_estat_en.htm#Pr 51 Tobias Buck,“Eurostat faces Paris corruption probe,” Financial Times, 16 May 2003; Tobias Buck, “‘To safeguard the interests of the institution’—but was action taken quickly enough?” Financial Times, 17 June 2003 52 Lattanzio was arrested in 1995 for having accepted kickbacks from a major contractor not related to this case and was named by another who had major illegal dealings in Sicily Lattanzio was, however, acquitted The relevant 1994 European Commission antifraud unit report by UCLAF only describes a fraudulent export of tobacco to Romania; it does not address this case, nor the broader issue of a tobacco cartel The EU did stop heavily subsidizing tobacco exports “Prese tangenti per miliardi destinate alla dc di Bruxelles? Suicida funzionario Cee,” La Stampa, 31 Mar 1993; Commission of the European Communities, Protecting the Community’s Financial Interests: The Fight against Fraud Annual Report 1994, COM illegible final (Brussels, 1995), 50–51; Gianni Barbacetto, Peter Gomez, and Marco Travaglio, Mani Pulite: La vera storia (Rome: Riuniti, 2002), 346– 47; Lirio Abbate, “Nella città dove bisona pagare 150 euro per essere riforniti dalle autobotti,” La Stampa, 19 May 2002; “Ho pagato tutti i partiti,” La Stampa, Dec 1997 NOTES TO PAGES 173 – 182 243 53 Kelvin Mackenzie, “A truly nonsensical law for television,” Financial Times, Sept 2006 54 Buck, “‘To safeguard the interests of the institution’—but was action taken quickly enough?” CHAPTER THE EUROPEAN UNION, THE INTERNATIONAL POLITICAL ECONOMY, AND CORRUPTION W Michael Reisman, Folded Lies: Bribery, Crusades and Reforms (New York: Free Press, 1979), 18 Rộpublique Franỗaise, Cour dappel de Versailles, no 2004-00824, Dec 2004; “Deux décisions, deux visions,” Le Monde, Dec 2004 Patrick Ziltener, “The Economic Effects of the European Single Market Project: Projections, Simulations—and the Reality,” Review of International Political Economy 11/5 (Dec 2004): 953 –79; M Haller, “European Integration and Sociology: The Difficult Balance between the Theoretical, Empirical and Critical Approach,” European Societies 2/4 (2000): 533 –48 Cf Michael Johnston, Syndromes of Corruption (Cambridge: Cambridge University Press, 2006); Jonathan Hopkin,“The Emergence and Convergence of the Cartel Party: Parties, State and Economy in Western Europe,” paper presented at the London School of Economics, 30 Jan 2003 Andrei Shleifer and Robert W Vishny, The Grabbing Hand: Government Pathologies and Their Cures (Cambridge: Harvard University Press, 1998) Andrew Moravcsik, The Choice for Europe: Social Purpose and State Power from Messina to Maastricht (Ithaca: Cornell University Press, 1998), 76–77 Avner Greif, Institutions and the Path to the Modern Economy (Cambridge: Cambridge University Press, 2006) Another way of looking at the situation is to note that it is remarkable that there is as much compliance with EU and member-state law as there is See Karen J Alter, Establishing the Supremacy of European Law: The Making of an International Rule of Law in Europe (Oxford: Oxford University Press, 2001); Lisa Conant, Justice Contained: Law and Politics in the European Union (Ithaca: Cornell University Press, 2002); Tanya A Börzel, “Non-Compliance in the European Union: Pathology or Statistical Artifact?” Journal of European Public Policy 8/5 (2001): 803 –24 Conant shows that it takes considerable support of the Commission and member states before an European Court of Justice ruling has an impact beyond the particular case it concerns United States v ABB Vetco Gray, Inc and ABB Vetco Gray UK, Ltd., case no 04-CR279-01 (S.D Texas); United States Securities and Exchange Commission v ABB Ltd., case no 1-04-CV-01141, June 2004 10 K Griffiths,“Oh what a lovely war on terror it’s been for Halliburton,” Independent, 27 Mar 2005; S Bodzin, “Pentagon aided Halliburton, official charges,” Los Angeles Times, 28 June 2005; Henry A Waxman and B L Dorgan, Halliburton’s Questioned and Unsupported Costs in Iraq Exceed $1.4 Billion, joint report of the U.S House of Representatives, Committee on Government Reform, Minority Staff Special Investigations Division, and the U.S Senate, Democratic Policy Committee (Washington, D.C., 2005), http://www democrats.reform.house.gov/Documents/20050627140010–82879.pdf 11 “China supplies funds with fewer conditions,” Financial Times, 14 Nov 2005; John Reed, “A peace dividend is elusive as Angola embraces ‘petro-diamond capitalism,’“ Financial Times, 14 Nov 2005 12 See Ch for details David Leppard, “Bid to end Saudi probe to safeguard arms deal,” Sunday Times, 26 Mar 2006 244 NOTES TO PAGES 182 – 188 13 Hugh Williamson,“Export credit agencies’ graft crackdown stalls,” Financial Times, 15 Feb 2006 14 Michael Peel, “Big money, high politics and Nigerian oil interests make a murky mix,” Financial Times, Aug 2006 15 Independent Inquiry Committee into the United Nations Oil-for-food Programme Manipulation of the oil-for-food programme by the Iraqi regime 27 Oct 2005, 608–22, and tables 1– 8, http://www.iic-offp.org/story27oct05.htm; Mark Turner, Michael Peel, and Haig Simonian, “Most Iraq oil-for-food scandal perpetrators go unpunished,” Financial Times, 9/10 Dec 2006 16 George Parker, Daniel Dombey, and Kerin Hope,“Bulgaria, Romania to face ‘tough’ EU entry,” Financial Times, Sept 2006 17 John Gerring, “What Is a Case Study and What Is It Good For?” American Political Science Review 98/2 (May 2004): 341– 54 18 There have been considerable advances in the causal logic of necessary condition counterfactuals See Gary Goertz and Jack S Levy, eds., Causal Explanations, Necessary Conditions, and Case Studies: World War I and the End of the Cold War (London: Routledge, forthcoming) 19 Miriam A Golden and Lucio Picci, “Proposal for a New Measure of Corruption, Illustrated with Italian Data,” Economics and Politics 17/1 (Mar 2005): 37–75; see also Charles Sampford, Arthur Shacklock, Carmel Connors, and Fredrik Galtung, eds Measuring Corruption (Aldershot: Ashgate, 2006) 20 Cf Johann Graf Lambsdorff and Sitki Utku Teksoz, “Corrupt Relational Contracting,” in The New Institutional Economics of Corruption, ed Johann Graf Lambsdorff, Johann Markus Taube, and Matthias Schramm (London: Routledge, 2005), 138–51 21 Josephine Andrews and Gabriella R Montinola, “Corrupt Democratization: The Importance of Institutional Design in the Multi-Dimensional Political Environments of Transition,” paper presented at the Annual Meeting of the American Political Science Association, Boston, – Sept 1998; cf Edward Banfield, “Corruption as a Feature of Governmental Organization,” Journal of Law and Economics 18 (1975): 587–605; Ann Sherlock and Christopher Harding, “Controlling Fraud in the European Community,” European Law Review 16/1 (Feb 1991): 20 – 36, here at 25 22 Jean-Pierre De Staercke, Agusta-Dassault: La cassation du siècle (Brussels: Éditions Luc Pire, 1999), 17 On ABB, see note 23 As quoted in Robert Graham, “The ‘Juppé effect,’“ Financial Times, Feb 2004 24 Political science and sociology have much to say about that Paul Pierson, Politics in Time (Princeton: Princeton University Press, 2004); James Mahoney, ed., Comparative Historical Analysis (Cambridge: Cambridge University Press, 2003) 25 Laurence Frost, “French defense tycoon takes helm of media empire,” Associated Press, 30 Sept 2004 26 “La justice Belge condamne des socialistes pour corruption,” Le Temps, 24 Dec 1998; Cour de cassation, Brussels, no JC98CN4_2, 23 Dec 1998; Jo Johnson, “A wellarmed custodian of press freedom,” Financial Times, 18 Mar 2004 27 Christopher Bliss and Rafael Di Tella, “Does Competition Kill Corruption?” Journal of Political Economy 105/5 (1997): 1001–23, here at 1005 28 Paolo Mauro, “Corruption: Causes, Consequences, and Agenda for Further Research,” Finance and Development 35/1 (Mar 1998): 11–14, here at 11 (emphasis in original) 29 Luigi Manzetti and Charles H Blake, “Market Reforms and Corruption in Latin America: New Means for Old Ways,” Review of International Political Economy 3/4 (Winter 1996): 662–97, here at 662; Simon Johnson, Daniel Kaufmann, and Pablo Zoido- NOTES TO PAGES 188 – 195 245 Lobatón,“Regulatory Discretion and the Unofficial Economy,” American Economic Review 88/2 (May 1998): 387– 92; Daniel Kaufmann and Paul Siegelbaum, “Privatization and Corruption in Transition Economies,” Journal of International Affairs 50/2 (Winter 1996): 419 –58; Yan Sun, Corruption and Market in Contemporary China (Ithaca: Cornell University Press, 2004) 30 World Bank Institute, Anti-Corruption in Transition: A Contribution to the Policy Debate (Washington, D.C.: World Bank, 2000), 23; G8 Chair’s Summary, St Petersburg, 17 July 2006, http://en.g8russia.ru/docs/25.html 31 Alan Fiske,“The Four Elementary Forms of Sociality,” Psychological Review 99 (Oct 1992): 689–723; Ruth Grant, “Ethics and Incentives: A Political Approach,” American Political Science Review 100/1 (Feb 2006): 29 – 39 32 “Yes, minister but,” Financial Times, 20 July 2006 33 Political theorist John McCormick goes so far as to suggest “institutional affirmative action for common citizens,” including “the participation of the entire citizenry in accusation/appellate processes dealing with political offenses.”John P McCormick,“Contain the Wealthy and Patrol the Magistrates: Restoring Elite Accountability to Popular Government,” American Political Science Review 100/2 (May 2006): 147–63, here at 161; Mark E Warren, “Political Corruption as Duplicitous Exclusion,” PS: Political Science and Politics 39/4 (Oct 2006): 803 – 807 34 McCormick, “Contain the Wealthy and Patrol the Magistrates,” 147 APPENDIX KEY DEAD MEN Johann Rapp,“Weapons maker struggles to regain image against corruption charges,” BC Cycle, 30 Nov 1989 Colm Keena, “Lowry ‘can say why Smurfit man gave (pounds) 150,000’” Irish Times, May 2001 Chirac was mayor of Paris from 1977 to 1995 and president of the RPR from 1976 to 1994 Charles Vial, “Paris, banc d’essai des privatisations,” Le Monde, 19 Feb 1989; Gérard Davet and Fabrice Lhomme, “Plusiers enquêtes convergent vers Jacques Chirac sans l’atteindre,” Le Monde, 15 Mar 2004; Fabrice Lhomme, “Le six dossiers qui convergent vers M Chirac,” Le Monde, 30 Mar 2001 “Rome,” Associated Press, Mar 1979 “Probe into German party official’s suicide amid funding scandal,” Agence France Presse, 21 Jan 2000 Renaud Lecadre, “L’ombre d’un truand sur le procès Alstom,” Libération, 11 Jan 2006; Julien Caumer, Les requins: Un réseau au coeur des affaires (Paris: Flammarion, 1999) “Top Elf convict Alfred Sirven dead at 78,” Agence France Presse, 13 Feb 2005 APPENDIX BRIEF SURVEY OF THE EUROPEAN UNION Studies of the EU are almost beyond number For a basic survey, see Desmond Dinan, Ever Closer Union? An Introduction to European Integration, 3rd ed (Boulder, CO: Lynne Rienner, 2005); for a complex analysis of the dynamics of the EU’s development, which also covers extensive historical ground, see Andrew Moravcsik, The Choice for Europe: Social Purpose and State Power from Messina to Maastricht (Ithaca: Cornell University Press, 1998) The EU itself gives a brief history and explains its institutions at http:// www.europa.eu.int The Treaties of Rome are what the Treaty establishing the European Economic Community and the Treaty establishing the European Atomic Energy Community quickly came to be called Both were signed on 25 March 1957 in Rome 246 NOTES TO PAGES 197 – 198 APPENDIX THE MAJOR INSTITUTIONS OF THE EUROPEAN UNION For fuller descriptions and analyses of the institutions, see John McCormick, Understanding the European Union: A Concise Introduction, 3rd ed (New York: Palgrave, 2005); Andreas Follesdal and Simon Hix, “Why There Is a Democratic Deficit in the EU: A Response to Majone and Moravcsik,” Journal of Common Market Studies 44/3 (2006), 533 – 62 See Lisa Conant, Justice Contained: Law, Politics, and Policy-Making in the European Union (Ithaca: Cornell University Press, 2002) For a rival view, see Karen Alter, Establishing the Supremacy of European Law (New York: Oxford University Press, 2001) Index Abacha, Sani, 27, 60 ABB corporation, 49–50, 181, 187 Abbey National Treasury Services, 102 Aburish, Said K., 219n126 ACPM corporation, 62 Acres International, 62– 63, 213n43, 214n57 Adenauer, Konrad, 154 Adidas, 204n42 Aérospatiale, 36, 99 agency capture, 166–70 agricultural policies, ix, 166–69, 172–73, 188, 193, 195 Agusta-Dassault affair, 36– 38, 188, 192–94 Ahold corporation, 85, 189 Airbus, 42, 92, 224n22 Aitken, Jonathan, 218n113 Alcatel, 63, 99 Alexander, Herbert E., 233n12, 234n25 Algernon, Carl, 191 Alitalia, 14 Allum, Percy A., 230n35 Alsthom corporation, 1, 35–36, 63, 152, 207n21 Alstom, 104, 207n21, 228n80 Alter, Karen, 243n8, 246n2 Al Yamamah arms sale, 68, 71–72, 80–81 Anan, Kofi, 186 Andreasen, Marta, 169, 171 Andreoli, Marcella, 230n40 Andreotti, Giulio, Andvig, Jens Christian, 219n126 Angola: arms sales to, 24–29, 54, 68, 81, 99; oil companies and, 59, 73, 76, 77, 182 Ansaldo corporation, 49 antibribery convention (OECD), 49, 56–59, 80, 181 Argentina, 14 arms sales, 12–13, 24–25, 60, 65–73 See also specific countries, e.g., Taiwan Arrowsmith, Sue, 240n11 Attali, Jacques, 27, 100 Aubert, Franỗois d, 239n5 Auchan corporation, 146 Auchi, Nadhmi, 39 Austin, David, 191 Avrillier, Raymond, 229n9 BAE corporation, xiii, 59, 63; Saudi arms sales and, 71–72, 182, 211 n10, 218 n117 Baldwin, David A., 222 n170 Balfour Beatty, 63 Balladur, Édouard, 237 n66 Bam, Z M., 62, 213 n43 Barbacetto, Gianni, 199 n16, 202 n22, 225n25, 242 n52 Barrot, Jacques, 187, 237 n66 Barry, Dave, 156, 239 n94 Barzel, Rainer, 42– 43 Bashi, Mamoun, 37 Bastien, André, 37 Batley, Richard, 232 n85 Bayart, Jean-Franỗois, 223 n2 Beau, Nicolas, 211 n2 Bedford, Becket, 240 n11 Belaïd, Fatima, 85, 223 n1 Belgium, 36 – 37, 67, 70, 167 Bellevaux, Hubert Le Blanc, 90 Bentham, Jeremy, 14 Berlusconi, Silvio, 11, 21, 31, 43, 51, 188; campaign financing and, 141, 157, 235 n49; conflicts of interest of, 105, 157; Mondadori and, 40 – 41; Tangentopoli trials and, 52 Bhutto, Benazir, 78 Bidermann, Maurice, 6, 11, 223 n1 Birk, Peter, 129 Bitteto, Valerio, 122 Blair, Tony, 6, 47–48, 55, 154, 177, 189, 238 n86; Margaret Thatcher and, 71, 210 n69 Bofors, 79, 83, 191, 221 n153 Bongo, Omar, 61, 74, 75, 219 n133 Bonnet, Jacques, 151, 235 n44 Borchert, Jens, 200 n1 Bosshard, Peter, 215 n61 Bosson, Bernard, 237 n66 Bouygues corporation, 104, 118, 153, 188, 230n31 BP (British Petroleum), 39, 59, 181; commissions paid by, 73; Elf-Leuna deal and, 89; Saudi arms sales and, 71; signature bonuses paid by, 75 Brats, Jacques, 191 Brauchitsch, Eberhard von, 43 247 248 INDEX Brenco corporation, 27 bribery, ix, 15, 44, 49, 66, 82, 176, 220n146; commissions and, 32, 57, 68–69; exportled corruption and, 54–56; free trade and, 4, 18, 31–32; legal, 35; OECD’s convention on, 49, 56–59, 80, 181; privatization and, 88–94; risk-and-penalty fee for, 129; scale of, 80, 84 Briscoe, John, 95 Brittan, Samuel, Brunner, Guido, 191 Buffetti Sistemi, 49 Bulgaria, 22–23, 183, 196 Bull, Martin J., 200n1, 206n12, 233n9 Bull Italia, 50 bureaux d’études See consulting firms Burke, Raymond, 94, 225n32 Burns, Terrence, 102 Bush, George W., 28 Buzio, Roberto, 50 Byrer, Stephen, 48 Caborn, Richard, 220n144 Cagliari, Gabriele, 13, 191 Calvi, Fabrizio, 201 n14 Cambodia, 14 Cameron, Stevie, 216n86, 224n16 Cameroon, 75 campaign financing, 2, 19, 135–58, 177; arms race dynamic of, 138–40, 189; British, 6, 48, 129–32, 139–40, 144, 148–49, 153, 158, 177; of Bush, 28; of Chirac, 26, 44–45, 110–11, 226n42; competition in, 138–40; decentralization and, 108, 110–25, 132– 33; French, 23–25, 110–19, 141–53, 193; German, 16, 42–43, 139–43, 149, 151–55; Irish, 42, 143; Italian, 119–28, 140–43, 148, 153, 156–58; of Mitterrand, 110–11, 115–16; Portuguese, 141, 143; public funds for, 150–53; Spanish, 1, 142, 143, 150–51; spending caps for, 143–50, 156– 57; Swedish, 153; transparency of, 155–56 Campbell, Dennis, 240n23 Campopiano, Guido, 222n161 Canada, 62–63, 92, 213n43, 214n57 Carignon, Alain, 96, 113 Carrefour corporation, 146 Cashore, Harvey, 216 n86, 224n16 Casino corporation, 146 Caumer, Julien, 245 n6 Cayman Islands, 59, 93 CDS (Democratic Center) Party, 151, 153 CDU See Christlich Demokratische Union Deutschlands Cecchini Report, 163 Cementation corporation, 64 –65 Central American Free Trade Agreement (CAFTA), Century Communications, 94 Cepsa corporation, 39 –40 Chad, 75, 220 n133 Cheney, Dick, 27, 28, 182 Chiesa, Mario, 119 –24 China, 70, 84, 93, 182 Chirac, Jacques, 11, 23, 51, 94, 98, 237n66; Angola and, 29; campaign funding scandal of, 26, 44–45, 110–11, 150, 193, 226n42; fictitious employment scheme and, 147– 48; Pasqua and, 152; public-private partnerships and, 103 – 4; Sempap scandal and, 191 Christian Democratic party See Democrazia Cristiana Christlich Demokratische Union Deutschlands (CDU), 1, 42– 43, 69, 97, 154; Kanther affair and, 149; Kohl and, 7, 12–13, 139, 141, 142, 236 n55; Leuna deal and, 89–90 Christlich Soziale Union (CSU), 12–13, 69, 90, 97, 141, 142, 154 Ciaurro, Gian Franco, 238 n93 Cir corporation, 40 Claes, Willy, 12, 36 – 38 Clark, Martin, 230 n37 Claussen, Hans Rudolf, 208 n34 Clean Elections project, 157–58 Clifton, Judith, 223 n3 Clinton, Bill, 26 CNPF (Conseil national du patronat franỗais), 117 Coởme, Guy, 3738 Collins, Neil, 225 n32 Colombia, 82, 99 Colombo, Gherardo, 119 –20 Commission départmentale d’urbanisme commercial (CDUC), 146 Commission nationale d’urbanisme commercial (CNUC), 146 commissions, 38, 57– 58, 65, 71–75; bribes and, 32, 57, 68 – 69; hidden, 75 –76; public-private partnerships and, 99, 104, 115 – 16; retro, 18, 75, 81, 99; tax-deductible, 219n121 Committee of the Regions (EU), 18 –19 Common Agricultural Policy (CAP), 169, 188, 195 See also agricultural policies Communist Party: French, 45, 114, 151; Italian, 122–25, 140, 148 INDEX Compagnie générale des eaux, 26, 95, 98, 104, 203n36, 225n37 competition, ix, 17–18, 30– 53, 185, 188–89; limits of, 48–53; managing of, 43–48; procurement policies and, 161–66 See also free trade Compsyst, 49 Conant, Lisa, 240n22, 243n8, 246n2 concession contracts, 164 Condotte acqua, 165–66 conflict of interest, 25, 100, 105, 157; Eurostat and, 172; export credit guarantee agencies and, 64; public-private partnerships and, 102–4; real estate deals and, 128–29 Congo, Republic of, 61, 76, 219n133 Conradt, David, 241n28 consulting firms, 92, 101, 109–10, 154; campaign financing and, 115–16, 144, 151– 52; commissions for, 65, 68–69 Cook, Robin, 79 Cools, André, 12, 37–38, 192, 194 Cooper, Neil, 212n16 Coopération 92, 104 coordinated market economy, 92 Coreco (regional audit committee), 121, 126–27 corruption, definition of, 15–17 Corruption Perceptions Index See under Transparency International Corsican network (réseau corse), 27, 74 Council of the European Union, 197–98 Craxi, Bettino, 43, 110, 120, 122, 124, 139, 225n25 Crédit Foncier de Monaco, 61 Crédit lyonnais, 6, 63, 221 n146 Cresson, Edith, ix, 90, 223n11 Croce, Benedetto, 158 Crociani, Camillo, 192 CSI (Centro siciliano di informatica), 49, 50 CSU See Christlich Soziale Union Cullen, Paul, 225n32 Curial, Jean-Bertrand, 25–26 Curtò, Diego, 225n25 Czech Republic, 25, 35, 196 Daimler Benz, 42 Dainty, John, 129 Dassault, Serge, 37, 38, 187, 208n32 Dassault affair, 36–38, 70, 140, 188, 193 Davigo, Piercamillo, 11 Davis, Ian, 212n22 De Benedetti, Carlo, 40, 41 De Busturia, Daniel, 39 249 decentralization, 2, 7, 107–34, 162, 178 –80, 185; democratization and, 18 –19, 132– 34; in France, 19, 23, 25, 94, 110 –19; in Italy, 109 –10, 119 –28; privatization and, 23–25, 110; in UK, 110, 128 – 34 Defence Export Services Organisation (DESO), 67 Deferm, Lộon-Franỗois, de Gaulle, Charles, 145 Delabarre, Michel, 18 Della Porta, Donatella, 200 n1, 200 n5, 228 n3 Del Ponte, Carla, 41 Delta International Establishment, 92– 93 De Luca, Maurizio, 222 n161 democratization, 12, 18 –19, 132–34 Democrazia Cristiana (DC), 97, 110, 122– 24, 148, 173 Deneuve, Catherine, 29 Descamps, Philippe, 229 n9 Desmond, Dermot, 42 Desmond, Richard, 48 De Staercke, Jean-Pierre, 207 n26, 233 n13, 244n22 Destrade, Jean-Pierre, 146 Deutsche Bank, 42 Deviers-Joncour, Christine, 69, 76, 217 n96 Dewar, Donald, 130 DGSE (Direction générale de la sécurité extérieure), 26, 28, 70, 193 Dinan, Desmond, 245 n1 Di Pietro, Antonio, 119 –20 Direction des relations économiques extérieures (DREE), 65 direct labor organizations (DLOs), 131 Doncaster, UK, 103, 129 – 31 Donnygate scandal, 128, 129 Dorgan, B L., 243 n10 Dos Santos, Eduardo, 25 –26, 28 –29, 54, 77 Dresdner Bank, 42, 63, 92 DSBK corporation, 89, 223 n6 Dumas, Roland, 24, 27, 69 –70, 76, 194 Dumez corporation, 118, 150 Dunne, Ben, 30, 192 Ecclestone, Bernie, 158 Elektra, 49 Elf, 6, 7, 11, 26, 76 –77, 80 – 81, 85, 193; campaign financing and, 146; Chad pipeline and, 75, 220 n133; commissions paid by, 58, 74 –75; Congo and, 219 n133; consortium of, 223 n6; Coopération 92 and, 104; Ertoil and, 38 –40, 193; Gabon and, 11, 56, 60–61, 74, 219 n133; Iraq and, 24; Leuna and, 21, 27, 76, 88 – 93, 142; Nigerian con- 250 INDEX Elf (continued) tracts of, 104; Taiwanese arms sales and, 69, 193–94 See also Total corporation Emmanuelli, Henri, 146, 235n38 employees, fictitious, 50, 98, 147–48, 177 ENEL corporation, 1, 140–41 ENI corporation, 64, 76, 93, 191 Enimont, 7, 13, 93, 192 Enron, 78, 85, 182, 189 environmentalism, 49, 52, 187, 197 See also waste management Equatorial Guinea, 6, 72, 214n55 Ertoil, 39–40, 193 Esat Digifone, 42 Esat Telecom, 42 Essanté corporation, 28 European Bank for Reconstruction and Development (EBRD), 48, 95, 210n68 European Commission (EC), 7, 9, 46, 107, 160–63, 168, 171, 197, 198 European Council, 198 European Court of Auditors, 170, 171 European Court of Justice (ECJ), 9, 52, 179, 198 European Economic Community (EEC), 167–68, 170, 195 European Monetary Union (EMU), 5– 6, 34, 38, 196 European Parliament, 6, 10, 157, 168, 198 Eurostat case, 172 Evans, Dick, 72 expense account fraud, 128, 129 Export Control Organisation (UK), 67 export credit guarantee agencies, 6, 10, 55, 56, 60, 64–65, 79 export-led corruption, x, 18, 54–84 Extractive Industries Transparency Initiative, 181 ExxonMobil, 39, 214n55 Fabius, Laurent, 219 n119 Falcone, Pierre, x, 25–29, 99–100, 152, 182 Falcone, Sonia Montero de, 28–29 Fanfani, Amintore, 98–99 FDP See Freie Demokratische Partei Federman, Joel, 234n25 Feliciaggi, Robert, 152, 192, 237n70 Fianna Fail party, 30, 192 Fiat-Ansaldo, 35 FIBA bank, 61, 213n39 fictitious employees, 50, 98, 147–48, 177 Filesa corporation, 151 Fininvest, 40–41, 85 Finland, 70, 196 Finmeccanica, 192 Firzli, Elias Youssef, 24 Flick affair, 42– 43, 51, 63, 69, 92, 151 Flint, Charles, 240 n23 Flood, Feargus M., 225 n32 Flynn, Padraig, 33, 206 n12 foreign aid, 60, 64 –65 Foreign Corrupt Practices Act (US), 80, 82, 181 Formenton group, 40 Forza Italia party, 31, 41, 97 France, 5, 14, 21, 31, 84, 167; campaign financing in, 23 –25, 110 –19, 141– 53, 193; decentralization in, 19, 23, 25, 94, 110 –19; euro and, 34; high-speed trains and, 36; privatization in, 88 – 94; public-private partnerships in, 103–4; Taiwanese arms sales by, 13, 27, 59, 65 –72, 78 –79, 193 – 94 Franchet, Yves, 172 fraud, in EU programs, 166 –70 free trade, – 4, 17–22, 31– 32, 80, 149, 173, 179, 185, 188 See also competition Freie Demokratische Partei (FDP), 13, 42, 89, 154, 193 Friderichs, Hans, 42– 43, 63, 89 – 90, 92, 224n22 Frigerio, Gianstefano, 233 n16 Froment-Meurice, Franỗois, 237 n66 Gabon, 11, 56, 60 – 61, 74, 219 n133 Gandhi, Rajiv, 221 n153 García Marcos, Isabel, 107 Gardini, Raul, 13, 93, 192 Gaudin, Jean-Claude, 135, 227 n62 Gaudino, Antoine, 115 –16 Gaydamak, Arkadi, 25 –29 GE (General Electric), 63 Germany, 5, 12, 16, 51, 182; arms sales by, 68– 69, 84, 91, 192; campaign financing in, 16, 42– 43, 139 – 43, 149 – 55; euro and, 34, 38; privatization in, 105 Gerring, John, 5, 15 Gillard, Michael, 231 n71 Global Witness, 181 GMH corporation, 39, 208 n40 Goertz, Gary, 244n18 Goetz, John, 223 n5, 233 n19 Golden, Miriam, 185 Goldman Sachs, 92 Goldsmith, Peter, 59 Gomez, Alain, 217 n100 INDEX Gomez, Peter, 202n22, 205n2 González, Felipe, 51 Grands travaux de Marseille (GTM), 150 Greece, 14, 164, 196; arms sales to, 63; budget deficits of, 169; euro and, 34 Green party, 49, 52 Greif, Avner, 180, 207n18, 243n7 Grenoble, France, 96–97, 114, 119 Grillo, Salvatore, 50 Groenhuijsen, M S., 241n29 Guelfi, André, 27, 58, 74, 90, 204n42 Guez, Bruno, 104 Guillon, Alain, 90 Guilloux, Allain, 26 Gunlicks, Arthur B., 234n33 Haggard, Stephan, 211n4 Hall, Peter A., 209n62, 216n80, 224n21 Halliburton, 10, 27, 27, 181, 182 Halstenberg, Friedrich, 43 Haughey, Charles, 30, 192, 205n1 Hawley, Susan, 216 n84 Heertje, Arnold, 228n2 Heffernan, Margaret, 205n1 Heidenheimer, Arnold J., 201n11 Heinze, Rolf G., 241n28 Hewlett Packard, 49 Heywood, Paul, 200n5 Hillinger, Jörg, 91, 192 Hinduja, Gopichand, 155, 221n153 Hinduja, Prakash, 155, 221n153 Hinduja, Srichand, 155, 221n153 Hirsch, Burkhard, 224n20 Hirst, Chrissie, 216 n84 Holzer, Dieter, 90, 92 Honeywell, 49–50 Houdray, Pierre, 61 Hubco, 78 Hürland-Büning, Agnes, 89–91 Hughes, Alan, 128–29 Hüllen, Wolfgang, 12–13, 192 Hurand, Henri, 227n56 Hussein, Saddam, 24, 68 IBM corporation, 49 IIU corporation, 42 Ỵle-de-France public schools, 45– 46, 48, 94, 100–101 Imbot, René, 193 Imbot, Thierry, 27, 70, 193, 204n44 India, 79 Indonesia, 64, 76, 78, 79, 105, 215n61 infrastructure projects, 7, 14–15, 31, 62– 65, 251 81, 188; bidding for, 44 – 46, 49 – 50, 59; campaign financing and, 145, 150, 151; concession contracts for, 164; decentralization and, 111–21, 126 –28; foreign aid and, 64 –65 See also procurement policies interaction effects, 185 International Monetary Fund (IMF), 55, 181, 221 n146 IRA (Irish Republican Army), 30 Iran, 67, 81 Iraq: arms sales to, 81; Coalition Provisional Authority of, 181, 186; oil-for-food program of, 24, 26, 182, 186 Ireland, 5, 30 – 31, 94, 143, 196 Italy, 5, 9, 11, 14, 31, 64, 84; campaign financing in, 119 –28, 140 – 43, 148, 153, 156– 58; decentralization in, 109 –10, 119–28; Lockheed and, 82; privatization in, 34, 93 – 94; public-private partnerships in, 109 –10; soccer team of, 175 Jaffré, Philippe, 74, 75, 84, 104, 203 n36, 207n21, 220 n138 Japan, 12, 36, 82, 182 Jean-Pierre, Thierry, 115, 200 n21 Jefferson, Thomas, 150, 238 n88 Johnston, Michael, 199 n14, 211 n84, 243 n4 Joly, Eva, 11, 89, 201 n8 Joly-Baumgartner, Caroline, 201 n8 Jospin, Lionel, 48 Joxe, Pierre, 70 Juppé, Alain, 16, 147, 177, 187, 235 n46, 237n66 Kahn, Dominique Strauss, 26 – 27 Kanther, Manfred, 149 Kasma Overseas, 36 Keeler, John T S., 241 n28 Kenya, 63 Kiep, Walther Leisler, 68 – 69, 90, 92, 234 n22 Kinnock, Neil, 171, 174 Kleine-Brockhoff, Thomas, 224 n13 Knight Piesold, 63 Koch, Roland, 236 n55 Koetzle, William, Kohl, Helmut, 6, 7, 13, 14, 97, 175; campaign financing and, 42– 43, 139, 141, 236 n55; Elf-Leuna case and, 21, 27, 88 – 90; Mitterrand and, 83, 89 – 91; Saudi arms sales and, 69; Siemens and, 35 Kolodziej, Edward A., 216 n72 Kone corporation, 46 Korea, South, 84 252 INDEX Kuwait: Elf-Leuna deal and, 89; Ertoil case and, 39–40; Iraq’s invasion of, 68 Lagardère corporation, 188 La Malfa, Giorgio, 201n22 Lambert, Mick, 216n82 Lambsdorff, Johann, 244n20 Lambsdorff, Otto, 42–43 Lanchester, Fulco, 234n33 Lang, Chris, 214n49 Laske, Karl, 201n14, 227n58 Lattanzio, Vito, 173, 242n52 Léandri, Étienne, 27, 100, 193, 237n69 Lebanon, 24 Leclerc corporation, 146 Lecue, Jean-Louis, 235n40 Lefebvre, Jacques, 193 Le Floch-Prigent, Loïk, 39, 75–77, 85, 89– 90, 208n38, 235n37 Legal and General Group, 102 Leonardo da Vinci program, 24 Lescasble, Valérie, 224n19 Lesotho, 62–63, 78, 213n43 Lethier, Pierre, 90, 224n12 Leuna corporation, 27, 76, 88–93, 142 Levy, Jack S., 244n18 Leyendecker, Hans, 51–52, 223n8, 236n55 Liberal Democrats (UK), 136 libertarianism, 153– 58 Licandro, Agatino, 109, 121, 126–27, 228n5 Liechtenstein, 61, 93, 154, 169–70 Lissouba, Pascal, 61 Litton corporation, 36–37 Lockheed, xiii, 82, 192 Lowry, Michael, 42, 191, 205n1 Lubenow, Gerald C., 232n4 Luchaire corporation, 81 Ludwig, J., 208n34 Lüthje, Uwe, 217n91, 234n22 Lyendecker, Hans, 217n90 Lyonnaise des eaux, 95–97, 104, 150, 226n42 Maastricht Treaty, 8, 86–87, 168, 196, 241n32 Macintyre, Andrew, 202n24 Mahoney, James, 244n24 Mairon, Pierre, 216n77 Malaysia, 64–65 Malesa corporation, 151 Mandelseon, Peter, 155, 221n153 Mani Pulite, 122, 124 Mannella, Francesco, 164 Mannesmann corporation, 85 Marchiani, Jean-Charles, 24, 27, 54 Massmann, Jürgen, 68 Mathot, Guy, 37 Mauro, Paolo, 188 Mazy, Jean-Louis, 37 Mazzanti, Giorgio, 76 McCormick, John, 246 n1 Méhaignerie, Pierre, 153, 237n66, 238n79 Mény, Yves, 200 n1 Mer, Franỗois, 219 n119 Mộry, Jean-Claude, 26, 45 – 46, 98, 101, 103, 193 Messerschmitt corporation, 36 Messier, Jean-Marie, 225 n37 Metta, Vittorio, 40 – 41 Minol corporation, 88 –93 Mistral corporation, 115 Mitsubishi, 35 –36 Mittal, Lakshmi, 48 Mitterrand, Franỗois, 6, 69, 85, 97, 175; Attali and, 100; campaign financing scandal of, 110 –11, 115 –16; Kohl and, 83, 89 – 91 Mitterrand, Jean-Christophe, 25 –26 Mollemann, Jürgen, 13, 193 Monaco, 61 Monate, Gérard, 235 n38 Mondadori corporation, 40 – 41, 188 Monod, Jérôme, 94, 226 n42 Montedison corporation, 93, 191, 192 Monzani, Pierre, 24 moral hazard, 73 Moravcsik, Andrew, 4, 179, 243 n6, 245 n1 Morisson, Jacques, 70 Müntefering, Franz, 97 Musharraf, Pervez, 78 Nassmacher, Karl-Heinz, 232 n4, 233 n11 National Lottery Commission (UK), 102 Naylor, R T., 213 n37 nepotism, 33, 99, 130, 172, 174, 186 Netherlands, 14, 31, 46, 82– 83, 167 Neuman, Volker, 233 n9, 238 n80 Névache, Guy, 113 Newell, James L., 200 n1, 206 n12, 233 n9 Nigeria, 60, 68, 104, 182; ABB contracts with, 187; Halliburton and, 10, 27 Nikolaou, Kalliopi, 172 Noir, Michel, 118 –19 Norconsult, 63 Norris, Pippa, 201 n16 North American Free Trade Agreement (NAFTA), 173, 186 North Atlantic Treaty Organization (NATO), 12, 36 Norway, 42 INDEX O’Brien, Denis, 42, 191, 209n48 OECD See Organization for Economic Cooperation and Development Office de la lutte anti-fraude (OLAF), 162, 170 offsets, 35 offshore accounts, 36, 40, 59–61, 93, 169–70 oil companies, 26, 88–91, 104; arms sales and, 67–68, 76–77; commissions paid by, 73–75 See also specific firms, e.g., BP oil-for-food program (UN), 24, 26, 182, 186 Ojjeh, Mansour, 68, 216n87 Olivetti corporation, 14, 40, 49 Organization for Economic Cooperation and Development (OECD), 7–8, 12, 54– 56, 81–82, 182; Convention on Combating Bribery of, 49, 56–59, 80, 181; decentralization and, 107 Organization of American States (OAS), 186 O’Shea, Mary, 225n32 Otis corporation, 46 Overseas Development Administration (UK), 64 Pacifico, Attilio, 41 Pakistan, 78, 221n146 Palan, Ronen, 212n30, 242n40 Palme, Olaf, 221n152 Paolini, Giovanni, 40 Paribas (bank), 26, 39 Parmalat, 85, 189 Partido socialista obrero español See Socialist Party Parti Républicain (PR), 151 Partito Repubblicano Italiano (PRI), 50, 122, 124, 148 Partnerships UK, 101–2 party financing See campaign financing Pasqua, Charles, 23–27, 33, 76, 98–100, 193; campaign financing and, 152, 192; publicprivate partnerships and, 103–4 Pasqua, Claude, 24 Pasqua, Pierre, 27, 152, 193 Patrimoine-Ingénierie, 100–101 Pavlopoulos, Noulis, 23–24 Petromin corporation, 76 Pfahls, Holger, 27, 68, 90, 92, 192, 234n22 PFIs See private finance initiatives Piattoni, Simona, 230n35 Picci, Lucio, 185 Pierson, Paul, 244n24 Plaid Cymru, 52 Pongsudhirak, Thittinan, 105 Popis, Claude, 229n9 253 Portugal, 34, 141, 143, 196 Poulson, John, 128, 231 n71 Poussier, Bernard, 100 Powell, Charles, 64 – 65 PPPs See public-private partnerships Prada, Maurizio, 122–23 Previti, Cesare, 40 – 41 PRI See Partito Repubblicano Italiano PricewaterhouseCoopers, 95 prisoners’ dilemma, 144 private finance initiatives (PFIs), 88, 96, 99, 103 privatization, 2, 5, 20, 85 –106, 155, 185; bribery and, 88 – 94; concession contracts and, 164; decentralization and, 23 –25, 110; government subcontracting and, 95 – 102; political patronage and, 98; politician-assisted, 88 – 94; public ethics and, 102–4; secrecy and, 88, 95 – 96; subcontracting of government services and, 95 – 98 procurement market commission, 101 procurement policies, 23, 31, 161–66; Belgian, 36 –37; British, 163, 165; French, 44–46, 165 – 66; Italian, 162– 64; monitoring of, 164 – 66; secrecy and, 48 – 49 See also infrastructure projects Prodi, Romano, 34, 166, 206 n17 PSDI (Partito Socialista Democratico Italiano) See Social Democrats public-private partnerships (PPPs), 13, 43 – 48, 87, 98 –104, 109 –10, 113 –14 public works See infrastructure projects Puelinckx, Alfons, 37, 207 n31 Putnam, Robert, 119, 230 n230 Qatar, 67 quangos, 98 –99, 103 Quatraro, Antonio, 171–73, 193 Quattrochhi, Ottavio, 221 n153 Rallye corporation, 146 Rassemblement pour la République (RPR), 23–24, 44 – 46, 94, 98, 150, 151, 193; fictitious employment scheme and, 147– 48; public-private partnerships and, 103 – 4, 113–14; Sempapa scandal and, 191 RCS corporation, 46 Redi corporation, 49 Reisman, W Michael, 177, 243 n1 Renk corporation, 24 Rhodes, Martin, 156 Rich, Marc, 26, 28 Riet corporation, 49 254 INDEX Riggs bank, 214n55 Riley, Jack, 128 risk-and-penalty fee, 129 Rodríguez, Miguel Angel, 63 Romania, 22–23, 48, 196 Rome, Treaties of, 11, 195 Rose-Ackerman, Susan, 16, 201n7, 201n11, 212n20, 228n3 Rosenstein-Rodin, Paul, 159 Roussin, Michel, 98 Routier, Airy, 224n19 RPR See Rassemblement pour la République rule of law, 11, 22, 29, 77–79 Russia, 64, 84, 88 Rüther, Norbert, 97, 226n47 RWE corporation, 95 Sabca corporation, 207n26 SACE, 64 Salt Lake City Olympics, 203n33 Sama, Carlo, 93 Sampford, Charles, 201n6, 244n19 Sandholtz, Wayne, Santer, Jacques, 172 Santini, André, 104 Santini, Dominique, 104 Sapin, Michel, 6, 114 Sarbanes-Oxley, 181 Saudi Arabia, 67–68, 71–73, 76, 80–81, 91, 92, 211n10 Savimbi, Jonas, 77 Schedler, Andreas, 233n15 Schirra, Bruno, 224n13 Schleifer, Andrei, 178, 243n5 Schmidt, Vivien A., 229n9 Schneider corporation, 214n57 Schreiber, Karlheinz, 68–69, 92, 192, 224n16, 234n22 Schreyer, Michaele, 171 Schröder, Gerhard, 21, 91, 97 Scott, Richard, 212n23 Scottish Enterprise Glasgow, 130 SEA See Single European Act SEAT corporation, 151 secrecy, 58–60, 166; arms sales and, 65–66, 71; campaign financing and, 155–56; culture of, 173–74; national security and, 59, 70, 83; oil companies and, 74–77; privatization and, 88, 95–96; whistle-blowing and, 171–73 SEM See Société d’économie mixte Semader, 114–15, 227n62 Sempap scandal, 191 Serious Fraud Office (UK), 55, 72 Service des études législatives, 117 Shakespeare, William, 54, 189 Sharif, Nawaz, 78 Shaw, George Bernard, 30 Sheldon, Robert, 71 Shell Oil, 39, 71 Shinn, James, 211 n84 Shiratori, Rei, 233 n12 Sicily, 49–50 Sidex corporation, 48 Siemens, xiii, 14, 49, 85; high-speed train bid by, 1, 35 – 36, 51, 151 Single European Act (SEA), 2, – 9, 29, 32, 44–53, 135, 195 – 96, 198 SIPRI (Stockholm International Peace Research Institute), 215 n69 Sirven, Alfred, 11, 39, 69, 76 –77, 85, 89 –90, 146, 193 – 94 Sisti, Leo, 201 n14 Skandia corporation, 85 Skoda corporation, 35 Slovakia, 22–23, 25, 26, 35, 84, 196 Smith, Claire M., 236 n59 SNPE (Société nationale de poudres et explosifs), 81 Social Democrats: German, 38, 91, 97, 143, 154; Italian, 50, 122–23, 148 Socialist Party: Belgian, 37– 38, 140; French, 45, 110 –11, 114 –18, 151; Italian, 110, 120, 148; Spanish, 1, 35 – 36, 36, 51, 151 società di servizi See consulting firms Société centrale immobilière de la Caisse des dépôts et consignations, 111–12 Société d’économie mixte (SEM), 101, 227n62 Socrates program, 24 Söderström, Hans Tson, 224 n21 SOFREMI (Sociộtộ franỗaise dexportation des matộriels, systốmes, et services), 24 – 26, 99–100 Sole, Ephraim, 62 Soskice, David, 209 n62, 216 n80, 224 n21 South Africa, 62, 213 n43 Southgate, Colin, 71, 211 n12 Spain, 39, 84, 167, 196; campaign financing in, 1, 142, 143, 150 –51; high-speed train bids in, 1, 35 –36, 51, 151 SPD (Sozialdemokratische Partei Deutschlands) See Social Democrats Spelman, Caroline, 210 n68 Spencer, John, 242 n41 spending caps, 143 – 50, 156 – 57 Spie Batignolles corporation, 62, 63, 213 n43, 214n57 Spitael, Guy, 37 INDEX Staatsbürgerliche Vereinigung (SV), 154 Steinmüller corporation, 38, 97 Stiglitz, Joseph E., 228n2 Stille, Alexander, 236n49 Stockholm International Peace Research Institute (SIPRI), 215n69 Stoker, Gerry, 232 n85 Strauss, Franz Josef, 68, 90 Strauss, Max, 68, 90, 92, 234n22 Straw, Jack, 234n29 subcontracting, 95– 98 Suez corporation, 95, 215n61 Suez Environment, 226n42 Suez-Lyonnaise, 96 – 97 Sun, Yan, 245n29 Sweden, 64, 196; arms sales by, 79, 83; campaign financing in, 153 Switzerland, 59, 61, 169 Taiwan, 84; French arms sales to, 13, 27, 59, 65, 69–72, 78–79, 193–94 Talleyrand, Charles Maurice de, 85, 106 Tangentopoli trials, 51–52 Tarallo, André, 74, 77, 220n133 tax evasion, 26, 42–43, 153, 193 Technip, 27 Techniques d’Avant-Garde (TAG), 216n87 Telecom Eireann, 42 telecommunications industry, 31, 33, 40– 42, 63 Telenor, 42, 205n3 Teti, Raffaello, 194 Thacker, Strom C., 5, 15, 199n6 Thailand, 105 Thales corporation, 14, 31, 63, 79, 217n94 Thames corporation, 96, 215n61 Thatcher, Margaret, 47, 70–72, 83; Tony Blair and, 71, 210n69; privatization campaign of, 87, 131 Thatcher, Mark, 6, 64–65, 71–72 Thinet corporation, 104 think tanks See consulting firms Thomson CSF, 14, 24, 26, 31, 69–70, 99, 217n94 Thorn EMI, 71 Thyssen Handelsunion, 223n6 Thyssen Henschel, 68– 69, 89– 92, 192 Time Export, 151 tobacco industry, 158, 171–73, 193, 242n52 Tokhtakhounov, Alimzhan, 203n33 Tomkinson, Martin, 231n71 Total corporation, 24, 29, 39, 58–59, 182 See also Elf TotalFina, 61, 74 255 transparency See secrecy Transparency International, 47, 55, 80, 105, 181; Bribe Payers Index of, 80, 221 n156; Corruption Perceptions Index of, ix, 184 – 85 Travaglio, Marco, 202 n22, 205 n2 Treuhandanstalt, 88, 89, 92 Trident corporation, 207 n26 Trienekens, Helmut, 97 Troielli, Gianfranco, 93 Tunisia, 27, 110 Turkey, 64, 82 Turone, Sergio, 239 n101 TWE corporation, 97 Tyco, 85 Tyrrell, Alan, 240 n11 Ulbricht, Walter, 89 Unione Petrolifera, 140 – 41 Union pour la dộmocratie franỗaise (UDF), 11314 UNITA party, 25, 76, 77 Unité coordinatif de la lutte anti-fraude (UCLAF), xi, 170, 242 n52 United Kingdom (UK): arms sales by, 60, 67, 71–73, 80 – 81, 142, 182, 211 n10; campaign financing in, 6, 48, 129 – 32, 139 – 40, 144, 148 – 49, 153, 158, 177; decentralization in, 110, 128 – 34; public-private partnerships in, 46 – 48, 101– United Nations (UN), 28 –29, 55; Iraq’s oilfor-food program of, 24, 26, 182, 186 United States, 84, 181, 187 Urbatechnic, 45 – 46, 48, 116 Usinor corporation, 210 n67 Valenti, Arnaldo, 40 van Buitenen, Paul, 172 Van der Biest, Alain, 194 Vanni d’Archirafi, Raniero, 166 Vannucci, Alberto, 200 n5 van Ruymbeke, Renaud, 10, 204 n42, 211 n2, 223n1, 235 n37 Van Schouwen, Carlos, 51 Varano, Aldo, 228 n5 Veiola Water, 95 Veldt, M I., 241 n29 Veolia Environnement, 203 n36 Verwaerde, Yves, 77 Vishney, Robert W., 178, 243 n5 Vivendi, 85, 96, 97, 203 n36, 225 n37 Vivendi Environnement, 95 Volkswagen, 151 256 INDEX Wang, Andrew, 70, 79 Warren, Mark, 189 waste management, 38, 97–98, 113–14 See also environmentalism Watt, Dougal, 171–72 Waxman, Henry A., 243n10 Weyrauch, Horst, 234n22 whistle-blowing, 171–73 Wilhelm, Bernard, 194 Williams, Robert, 236n53 World Bank, 12, 55, 159; commissions and, 58; decentralization and, 107; Lesotho and, 63; Pakistan and, 78 World Bank Institute, 185 WorldCom, 85, 189 World Development Movement, 60 World Economic Forum, 186 World Trade Organization (WTO), 17, 173 Yatom, Danny, 203 n33 Yin Ching-feng, 70, 194 Zoelleck, Robert, ZTS-Osos, 26 Zuckerman, Alan S., 238 n92 ... understanding corruption cases in the western EU countries that have appeared in the news since the 1980s, and for understanding the persistence of cor1 THE BEST SYSTEM MONEY CAN BUY ruption in the. .. Press Printed in the United States of America Library of Congress Cataloging -in- Publication Data Warner, Carolyn M., 1961– The Best system money can buy : corruption in the European Union / Carolyn... firms and subject their activities in the market to an independent overseer: the European THE BEST SYSTEM MONEY CAN BUY Commission Considerable corruption in the old state-controlled system was exposed