Show Index: gdi
Ara Marcen Naval examines how Venezuela’s military entrenchment in government and the economy undermines democracy and fuels corruption, and highlights the urgent need for transparency and civilian oversight.
Venezuela’s recent turmoil, marked by allegations of electoral fraud and widespread protests, reflects deeper systemic issues affecting the nation. These issues include evidence of rampant corruption, an overly militarised government, and the erosion of democratic principles.
The Venezuelan government’s adoption of a ‘civic-military’ model, has led to the military’s deep entrenchment in both political and economic spheres. This strategy not only ensures military loyalty through ideological indoctrination but also through substantial economic privileges. Consequently, the military’s influence extends far beyond traditional defence roles.
According to a 2021 report by Transparencia Venezuela, the Bolivarian National Armed Forces (FANB) hold significant positions in key sectors. Military personnel are present in the boards of at least 103 public companies and 11 out of 34 government ministries. Furthermore, 24 companies under the Ministry of Defence, mostly unrelated to military functions, highlight the extensive military footprint in non-defence areas.
There are risks associated with the military’s involvement in Venezuela’s economy. The military controls crucial sectors such as manufacturing and agriculture and food, which allows them to manipulate essential resources. This control is not only undemocratic but also breeds corruption and inefficiency.
Transparencia Venezuela reported an increase in the number of military personnel on public company boards from 2020 to 2021. However, this increased presence has not led to improved transparency or accountability. Many military-run enterprises operate with little public oversight, raising serious concerns about corruption and mismanagement. According to the Government Integrity Index, Venezuela faces critical corruption risks across its defence sector. Civilian democratic control of the military is extremely weak, and defence institutions are largely unaccountable to the public. Corruption is endemic throughout the sector. External scrutiny and institutional transparency are virtually non-existent, particularly concerning arms acquisitions and financial management. This lack of oversight exacerbates corruption and mismanagement issues, further undermining democratic governance and public trust.
The political power wielded by the military in Venezuela is equally concerning. Numerous former military officials occupy significant political roles, including governorships and mayoralties. The 2021 regional elections saw several ex-military figures elected, underscoring the military’s entrenched political influence.
Nicolás Maduro, the political successor of Chávez, has continued and deepened the militarisation of the government. During his tenure, a significant number of high-ranking government positions have been occupied by active or retired military officers, further consolidating military power within the state apparatus. The FANB has expanded its role in the economy and the management of the country’s strategic resources. In essence, the Venezuelan Armed Forces are closely tied to Chávez, Maduro, and their political project. This intertwining of military and political power creates a robust support system for the ruling regime. By placing military loyalists in key civilian roles, the regime secures a power base that is resistant to opposition and external pressures.
The Venezuelan government leverages its control over the armed forces to maintain ‘social peace’, which often means suppressing dissent and protests through force. The recent electoral fraud allegations have sparked significant public outcry, met with harsh responses from the government, calling the demonstrations ‘terrorists acts’ and sending the security forces to clash with upset citizens. This repression stifles democratic expression and perpetuates a cycle of fear and control.
The militarisation and corruption within the Venezuelan government have profound implications for democracy. The dominance of military power in political and economic spheres erodes democratic institutions and processes. Electoral fraud allegations are symptomatic of a broader decline in democratic norms, where elections are manipulated to maintain the status quo rather than reflect the will of the people.
While Venezuela finds its way out the current situation, hopefully moving towards democratic principles, there will need to find pathways to address these deep-rooted issues. First, enhancing transparency and accountability within military-run enterprises is crucial. Implementing robust anti-corruption measures and ensuring independent audits of military expenditures can help restore public trust.
Moreover, reducing the military’s role in civilian government functions is essential to strengthening democratic institutions. Encouraging civilian oversight of the military and promoting democratic norms can gradually diminish the military’s political influence. To get out of the current crisis, there is a need to improve the governance of the defence sector, and the military has a key role in the democratisation and accountability process.
July 30, 2024 – Transparency International Defence & Security (TI-DS) expresses deep concern that the potential ‘disintegration’ of state cooperation in West Africa could exacerbate conflict in the already unstable region.
Following a summit of the Economic Community of West African States (ECOWAS) earlier this month, the bloc cautioned the formation of a breakway union, run by the military juntas in Niger, Mali and Burkina Faso, would worsen insecurity and disrupt the work of a long-proposed regional force.
Research by TI-DS previously found that Mali, Niger, Ghana and Nigeria all face a very high risk of corruption in their defence and security sectors, while Burkina Faso is at a critical risk. Corruption in these sectors increases the risk of conflict and weakens the ability to manage and resolve unrest, compromising regional stability.
Sara Bandali, Director of International Engagement at Transparency International UK, said:
“We express deep concern over the recent warning from ECOWAS about the potential damage to the region’s security following the formation of a breakaway union by the military rulers of Niger, Mali, and Burkina Faso. In a region already marred by conflict and insecurity – much of which has been caused or exacerbated by corruption in the defence and security sectors – this move threatens to make the region and its people less safe.
“Cooperation, not competition, are key to addressing the corruption and insecurity issues the region faces. It’s clear that corruption in the defence and security sectors makes conflict more likely by fuelling the flames of grievance and unrest, while simultaneously making it harder to manage conflicts after they arise by weakening the effectiveness of military response.
“We urge regional leaders to prioritise unity and collective action for a secure future free from corruption and the conflict that both stems from, and is fuelled by it. We stand ready to support governments and civil society in the region in this vital endeavor.”
Notes to editors:
Mali, Niger, Ghana and Nigeria and Burkina Faso feature in Transparency International Defence & Security’s 2020 Government Defence Integrity Index (GDI).
The Index scores and ranks countries based on the strength of their safeguards against defence and security corruption.
Mali, Niger, Ghana and Nigeria all appear in band ‘E’, indicating a ‘very high’ risk of corruption. Burkina Faso is in band ‘F’, indicating a ‘critical’ risk.
As world leaders convene in Washington DC for the 2024 NATO summit, Ara Marcen Naval highlights the need to address and prevent corruption in military spending.
As global insecurity rises, so does militarisation and defence spending. The latest data from the Stockholm International Peace Research Institute (SIPRI) shows world military expenditure rose for the ninth consecutive year to an all-time high of $2.443 trillion in 2023. This represents an increase of 6.8 per cent in real terms from 2022, which is the steepest year-on-year increase since 2009. This sharp rise demands our attention and underscores the urgent need for greater transparency in military spending.
Transparency International Defence & Security has long sounded the alarm on corruption – a hidden threat in times of rising military expenditure.
Corruption in the defence sector is multifaceted. While bribery is the most recognised form, corruption also includes conflicts of interest, embezzlement, nepotism, sextortion, and undue influence. This pervasive issue thrives in environments characterised by secrecy and wealth – factors that are especially prevalent in the defence and security sector. Often deemed too complex and sensitive for meaningful external scrutiny, this sector is fertile ground for corruption when oversight is inadequate.
The rise in defence spending is linked with increasing corruption risks. Increased spending must be accompanied by vigilant attention to corruption risk. There is a strong indication that the relationship between defence spending and corruption is cyclical. In countries experiencing state capture – where private interests corrupt a country’s decision-making to benefit themselves, rather than the public – elites are more likely to prioritise military spending, further perpetuating corruption.
Many defence institutions worldwide are ill-equipped to manage the higher corruption risks that militarisation brings. Transparency International Defence and Security’s Government Defence Integrity Index (GDI), which assesses countries on the strength of their safeguards against defence and security corruption, shows one-third of the world’s top 40 highest military spenders face high to critical corruption risks in their defence sectors. Even if some high spenders may have stronger domestic controls, they often export arms to countries facing much greater corruption risks.
Evidence shows that countries spending more on defence as a percentage of GDP tend to score lower in the GDI, indicating higher vulnerability to corruption. The 15 countries with the biggest military spending increases between 2021 and 2023 fall into c moderate to high corruption risk categories.
As international insecurity rises, so does global defence spending. However, the hidden cost of this escalation is the proliferation of corruption within the defence sector. When defence spending rises in countries where corruption safeguards are not prioritised, the issue becomes more serious. Corruption in the defence sector undermines peace and security by diverting critical resources and eroding public trust.
To manage the corruption risks associated with defence spending, NATO and its allies should:
- Ensure comprehensive transparency and oversight of defence budgets, allowing the public to have a clear picture of spending plans.
- Implement controls to reduce the risk of funds being lost to corruption as budgets are spent, such as granting parliaments, or a parliamentary defence committee, extensive powers to scrutinise spending and publishing the approved budget in an easy-to-understand form.
- Integrate anti-corruption measures into arms export controls to prevent exporting arms to countries unable to manage corruption risks.
- Utilise good governance and transparency as a tool for deterrence against foreign or domestic threats.
Only by addressing and preventing corruption can we ensure that defence and security sectors genuinely uphold national and human security, rather than exacerbating insecurity and putting populations at further risk of harm.
About the Government Defence Integrity Index (GDI)
The GDI measures institutional resilience to corruption by focusing on policymaking and public sector governance in national defence institutions. The Index is organized into five main risk areas: policymaking and political affairs, finances, personnel management, military operations, and procurement. Each indicator is scored based on five levels from 0-100, and scores are aggregated to determine the overall corruption risk level, ranging from A to F.
Header image: Dragoș Asaftei – stock.adobe.com
The scandals that shook the world into action in 2001 to prevent the illicit trafficking of small arms and light weapons (SALW) were often fueled by corruption. Arms brokers bribing government officials to create fraudulent export or import documentation played key roles in these schemes to violate UN arms embargoes.
In other cases, military or police personnel illicitly sold state weapons to insurgent or criminal groups for personal profit.
Several states are increasingly implementing new policies and approaches to better assess and mitigate corruption risks in arms
transfers and stockpile management. These laudable approaches, however, are still in their infant stages. There is also a lack of international coordination and cooperation on the ways in which corruption fuels arms diversion. It’s time for states to elevate their efforts to assess and mitigate corruption’s role in arms diversion by strengthening national and international action and cooperation.
Michael Ofori-Mensah, Head of Research at Transparency International Defence & Security, said:
“On Africa Day 2024, we acknowledge the significance of this celebration and the tremendous potential for progress across the continent.
“To ensure a bright future for Africa’s 1.2 billion people, it is crucial to address the pervasive issue of corruption within the defence and security sectors.
“Our research has shown how opaque procurement processes, mismanagement of defence budgets and weak oversight have resulted in the waste of funds, the erosion of public trust and the undermining of national security.
“Nigeria’s counter-insurgency efforts against Boko Haram have been severely hampered by corruption, while South Africa’s defence procurement scandals vividly highlight the broader challenges faced by the continent.
“It is important to also highlight the positive developments, including increased transparency initiatives and strengthened anti-corruption efforts in various African countries and through regional cooperation.
“Corruption in the defence sector has far-reaching consequences for governance and democracy, diverting resources away from essential services and fueling conflict and instability.
“By addressing defence sector corruption, African states can safeguard national security, promote economic development, and strengthen democratic institutions. Transparency International Defence & Security stands ready to support African governments and civil society in this crucial endeavor.”
Transparency International Defence & Security calls upon African governments and African regional institutions to:
- Enhance transparency and accountability: Implement robust transparency measures in defence procurement, budgeting, and decision-making processes. Establish independent oversight bodies and strengthen parliamentary oversight over defence activities.
- Strengthen anti-corruption frameworks: Enact and enforce comprehensive anti-corruption laws, including whistleblower protection mechanisms, and ensure the independence and adequate resourcing of anti-corruption agencies.
- Foster regional cooperation: Strengthen regional cooperation and information sharing on defence sector corruption, leveraging existing frameworks like the African Peer Review Mechanism (APRM) and Economic Community of West African States (ECOWAS) initiatives.
- Promote civic engagement: Encourage civil society organisations and the media to actively monitor and report on defence sector activities, fostering public scrutiny and accountability.
- Prioritise good governance: Uphold democratic principles, the rule of law, and good governance practices within defence institutions, as these are essential for preventing corruption and maintaining political stability.
May 7, 2024 – A new briefing from Transparency International Defence & Security (TI-DS) sheds light on the profound personal and societal impacts of corruption within the defence & security sectors and tells the often-overlooked stories of those who have suffered as a direct consequence.
Betrayed by the Guardians demonstrates how institutional weaknesses, gaps in oversight, systematic abuses of power, and lack of accountability within defence institutions have a disastrous impact on people’s lives.
As well as shedding light on the human impact, TI-DS makes the case for some of the key systemic steps needed to address the risk of corruption in these sectors.
The briefing features a series of compelling personal stories from around the globe, including:
- Amid the chaos and destruction of civil war in Sudan, exacerbated by corrupt arms trading despite international embargoes, Mazin’s life was shattered. His brother was hospitalised after a violent robbery by unaccountable military personnel, and his family’s business was destroyed.
- In Myanmar, 160 civilians, including 40 children, were killed when a village was bombed by the military junta. The weapons used in the airstrike were produced from raw materials and equipment supplied from private companies operating out of Singapore, despite sanctions and arms embargoes on Myanmar.
- Shoja witnessed the pervasive corruption within the security sector in Afghanistan. He recounts how wounded soldiers faced amputation unless they could afford to bribe military doctors or leverage connections for better treatment.
Sara Bandali, Director of International Engagement at Transparency International UK, said:
“This briefing not only highlights the devastating human consequences of corruption in the defence and security sectors – it also serves as an urgent call to action.
“The stories presented here reveal a collapse in the accountability mechanisms that are supposed to prevent the misuse of power, especially in the sector that is supposed to protect us. When these safeguards fail, a pervasive culture of impunity takes hold, disproportionately harming those with the least power.
“By implementing robust frameworks of institutional integrity and accountability, governments worldwide can mitigate these impacts and safeguard security and human rights for all.”
Ara Marcen Naval, Head of Advocacy at Transparency International Defence & Security, said:
“Too often, I witness corruption being brushed off as a bureaucratic offense, with the focus on the culprits, the loopholes that let them off the hook, and the heavy economic and political toll it takes.
“But what about the people whose lives are shattered by corruption? Especially within defence & security institutions – the very ones tasked with safeguarding us – the stakes couldn’t be higher.
“I’ve seen first-hand how corruption betrays the trust placed in our guardians. It’s not just a crime; it’s a blatant injustice, a roadblock to development, and a flagrant violation of human rights.”
As the international community prepares for the Summit for the Future in September 2024, TI-DS reminds that corruption is not victimless. To address corruption in the defence & security sectors, we call on governments to:
- Strengthen anti-corruption measures in defence
Reinforce governance of the defence sector with integrity measures by strengthening anti-corruption laws, regulations, and codes of conduct. Transparency International Defence & Security’s Government Defence Integrity Index (GDI) provides further guidance on good practice for defence sector resilience against corruption.
- Increase transparency in defence decision-making
Open up the secretive world of defence policymaking, budgets, and spending, ensuring they are accountable and bringing corruption risks and misconduct to light.
- Mobilise agents of change
Encourage the active participation of civil society, international organisations and media as agents of transformation, working hand in hand to drive out corruption in defence and security.
- Protect whistleblowers
Enact robust whistleblower protection systems that encourage and shield those willing to stand up and speak the truth.
- Promote global anti-corruption efforts
Join international sanctions and agreements, including the United Nations Convention against Corruption (UNCAC), and resist ‘defence exceptionalism’ – the idea that the defence & security sectors are exempt from normal transparency and accountability processes – in these frameworks.
Notes:
Join us at 3pm BST tomorrow (May 8) for our webinar ahead of the UN Civil Society Conference in Nairobi. The event will feature a discussion by anti-corruption champions and peacebuilders from around the world on how the upcoming UN Summit of the Future and its accompanying Pact of the Future can be a pathway to much-needed systemic change on how we view and address corruption in defence & security.
In this briefing, we showcase the experiences of people whose lives have been torn apart by corruption within the defence and security sector. Their stories are gathered from across the world, drawn from first-hand conversations with those willing to give testament, and from investigations conducted by media and international organisations.
These stories demonstrate how institutional weaknesses, gaps in oversight, systematic abuses of power, and lack of accountability within defence and security institutions have a disastrous impact on people’s lives. We make the case for some of the key systemic steps needed to address the risk of corruption in these sectors.
As world military spending hits all-time high, findings from Transparency International highlight urgent need for transparency and accountability
April 24, 2024 – Rising military expenditure is outpacing countries’ safeguards against corruption and threatening national and global security, new research from Transparency International finds.
Trojan Horse Tactics explores the nexus between the risk of corruption in the defence sector and rapid militarisation fuelled by Russia’s full-scale invasion of Ukraine, conflicts in the Middle East and the Sahel, and heightened tensions in the Asia-Pacific.
This comprehensive paper by Transparency International Defence & Security (TI-DS) examines the relationship between military expenditure and corruption through the lens of defence governance.
Analysis using the TI-DS Government Defence Integrity Index (GDI), which assesses nearly 90 countries on the strength of their corruption safeguards, combined with military spending data from the Stockholm International Peace Research Institute (SIPRI) reveals a clear trend. Countries that spend more on defence as a percentage of GDP tend to score lower in the GDI, indicating a higher vulnerability to corruption.
Additionally, the issue is becoming more serious. Data released by SIPRI this week shows world military expenditure rose for the ninth consecutive year to an all-time high of $2.443 trillion in 2023. This represents an increase of 6.8 per cent in real terms from 2022, which is the steepest year-on-year increase since 2009.
Corruption in the defence & security sector, including bribery, conflicts of interest, embezzlement, nepotism and sextortion severely undermines national security. These practices divert critical resources and erode public trust, weakening a country’s defence capabilities and stability.
Despite this, ‘defence exceptionalism’ – the idea that because of national security considerations the sector should be exempt from transparency norms – means that many countries neglect or completely ignore good governance standards such as parliamentary and civil oversight, accountability, and transparency rules.
Sara Bandali, Director of International Engagement at Transparency International UK, said:
“In an era marked by increasing militarisation, it’s crucial that we confront the deep-seated vulnerabilities to corruption in the defence & security sector.
“Our findings clearly indicate that rising military spending is linked with heightened corruption risks, which in turn threaten national and global security. Our previous research has shown how many defence institutions in countries around the world are ill-equipped to manage the higher corruption risks militarisation brings. If militarisation is to achieve the aim of upholding national and human security, these are issues which can no longer be overlooked.
“The evidence-based Government Defence Integrity Index not only identifies key areas of concern but also sets global benchmarks for accountability and transparency. We urge all countries to move towards these standards in response to growing insecurity.”
TI-DS calls on all countries to make transparency and accountability around defence spending a core aspect of the response to increased global insecurity by:
- Improving transparency and appropriate oversight of defence budgets to ensure that the public has as comprehensive a picture as possible of spending plans.
- Introducing controls to reduce risks of funds being lost to corruption as budgets are spent.
- Integrating anti-corruption measures into arms exports controls. This is to prevent exporting countries providing arms to countries which cannot demonstrate their will and capacity to manage corruption risks.
Militarisation is back on the agenda. Since the start of Russia’s full-scale invasion of Ukraine, and amidst rising tensions in East Asia, the Middle East and the Sahel, governments around the world have been ramping up their defence spending. Where budgets increase, so does corruption risk, especially when sectors are lacking functioning transparency, accountability, and oversight. Evidence from Transparency International Defence & Security’s (TI-DS) Government Defence Integrity Index 2020 (GDI) clearly shows that most defence institutions around the world do not have the necessary resilience to withstand these risks.
This paper provides an overview of the nexus between corruption and increased defence spending. Studies that have looked into the link between corruption and military expenditure often relied on measures of corruption that were not specific to the sector. This paper aims to change that by utilising data from a tool that captures sector-specific knowledge on corruption risk. It combines data on defence spending from the Stockholm International Peace Research Institute (SIPRI) with indicator scores on institutional resilience to corruption in the defence sector from the GDI. The combination of these data sources offers new insights into the relationship between defence spending and corruption. The findings are of critical importance for all concerned about the implications of rising militarisation.
The rise in global insecurity is pushing many US security partner countries to reignite or revise a familiar but risky approach to expanding national defence industrial capabilities. Sometimes referred to as ‘defence offsets’ or ‘industrial participation’, this approach requires foreign defence companies to invest in the local economies of countries as a condition for the purchase of major weapons systems. Defence offsets can benefit local defence industries, but they also contain many aspects that make them particularly vulnerable to corruption. US defence companies are rapidly responding to these partner demands with increasing US government support and within an incredibly lax US regulatory environment.