• India is among four countries with “no or little enforcement” mechanism to check foreign bribery, according to a report.
• The 2018 edition of the ‘Exporting Corruption Report’ was released by anti-corruption organization Transparency International.
• The classification of enforcement is based on the convention countries’ enforcement actions in the period 2014-2017.
About inclusion of India
• From the 2018 report, China, Hong Kong, India and Singapore are classified for the first time.
• They all have 2 per cent or more of world exports but are not parties to the OECD Anti-Bribery Convention.
• All 4 fall into the lowest level (little or no enforcement)
• They are, however, parties to the UN Convention against Corruption, which also calls for enforcement against foreign bribery
About OECD Anti-Bribery Convention
• The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions is a convention of the OECD aimed at reducing political corruption and corporate crime in developing countries.
• By encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries.
• Main goal is to create a truly level playing field in today’s international business environment.
• The Convention requires adherents to criminalise acts of offering or giving bribe, but not of soliciting or receiving bribes.
• Countries that have signed the convention are required to put in place legislation that criminalises the act of bribing a foreign public official.
• The OECD has no authority to implement the convention but instead monitors implementation by participating countries via its Working Group on Bribery.
• The OECD Anti-Bribery Convention was adopted in 1997 to address the supply side of international corruption.
• There are now 44 parties to the convention, 36 of them members of the OECD (Organisation for Economic Cooperation and Development).
Amendment to Prevention of corruption act
• The Indian Parliament passed a bill amending the present Prevention of Corruption Act, which covers bribe payers for the first time in July 2008.
• The bill also covers agents, subsidiaries and subcontractors of foreign firms working in India or doing business with Indian entities.
• The Indian Penal Code and Prevention of Corruption Act prescribe criminal and civil liability only for domestic corruption.
Mains Paper 2: Governance | Important aspects of governance, transparency & accountability
Prelims level: Exporting Corruption Report, OECD Anti Bribery Convention, UN Convention against Corruption, Prevention of corruption act
Mains level: Prevalence of corruption in India & how to stem its propogation