| Topic: |
Politics > Politics-USA |
| User: |
"Mirza" |
| Date: |
13 Jan 2004 01:44:00 AM |
| Object: |
World Watch on CORRUPTION |
This is a multi-part message in MIME format.
------=_NextPart_000_0029_01C3D96E.55DE2E40
Content-Type: text/plain;
charset="utf-8"
Content-Transfer-Encoding: 8bit
Lest developed nations mistakenly think that corruption is a feature
of the developing world, however, recent newspaper headlines have
served to disturb such complacency. Revelations of less-than- honest
practices in the highest echelons of corporate power in the Western
world have become almost daily fare, and even institutions and
corporations previously perceived as the quintessence of
respectability or as the darlings of the stock markets have been
tainted. A small sampling of cases will suffice to illustrate the
point. One recalls the exposure of the Lockheed Corporation in the 1
970s for having paid $25 million in bribes to Japanese officials to
ensure the sale of its Tristar L-1011 aircraft. For over a decade the
Swiss National Bank has been dealing with revelations that it
laundered the equivalent of some $4 billion of Nazi gold, about a
sixth of it from Jews destined for the death camps and most of the
remainder looted from banks in occupied countries. Furthermore, Swiss
banks have been exposed as deliberately withholding, for more than 50
years, the contents of “dormant” accounts of Holocaust victims and
their families.11 Germany’s GM subsidiary Adam Opel saw 65 of its
executives investigated for bribe‑taking in the mid‑1990s. Around that
same time a Canadian company, Bre‑X—which claimed to have discovered
the world’s largest gold deposit in Indonesia—perpetrated a fraud that
saw stock values escalate rapidly and then plunge scarcely two or
three years later when tests from the site revealed that it held
little or no gold. Investors’ stocks that had traded at more than $200
per share became worthless almost overnight.
But these examples of fraud and corruption are dwarfed by those
contained in the names Enron, WorldCom, Tyco, Adeiphia, Vivendi, and
ImClone, which have become household words over the past year or so
and which represent the latest—and most spectacular—in a long string
of corporate scandals. They seem most notable for the massive scale of
the corruption practiced. Astonishingly, Enron was able to overstate
its earnings by some $600 billion between 1997 and 2001, hiding huge
debts through “off balance sheet partnerships,” while WorldCom has the
dubious distinction of having suffered the world’s largest corporate
bankruptcy after the revelation that it moved costs from operating to
capital accounts to keep investors from discovering the corporation’s
increasing expenses and falling profits. In most of these scandals top
executives themselves directed the corrupt practices.
In an insightful editorial in the International Herald Tribune,
William Pfaff characterizes Enron not only as a scandal but also as
“the product of a pathological mutation in capitalism,” in which
“owners’ capitalism” has been replaced by “managers’ capitalism.”
Disregarding the long-term interests of their companies and their
stockholders, these managers pursued short-term gains with disastrous
results for everyone but themselves, as share values plummeted and
employee pension funds—tied to company investments through stock
options—became worthless.12
Pfaff concludes, “Owners’ capitalism failed in practice because the
markets have so diffused corporate ownership that no responsible owner
exists. Managers exploited that void to turn corporations into
mechanisms for their personal enrichment. This is morally
unacceptable, but it is also a corruption of capitalism itself, and of
the society in which it functions.” Reform, he asserts, “is useless
when the system itself has failed.”
more...:
http://www3.telus.net/studycircle/1/corruption.htm
------=_NextPart_000_0029_01C3D96E.55DE2E40
Content-Type: text/html;
charset="utf-8"
Content-Transfer-Encoding: quoted-printable
=EF=BB=BF<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; charset=3Dutf-8">
<META content=3D"MSHTML 6.00.2800.1276" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT color=3D#008000>
<P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 6pt; TEXT-INDENT: =
0.5in">Lest developed=20
nations mistakenly think that <SPAN style=3D"COLOR: =
#ff6600">corruption</SPAN> is=20
a feature of the developing world, however, recent newspaper headlines =
have=20
served to disturb such complacency. Revelations of less-than- honest =
practices=20
in the highest echelons of corporate power in the Western world have =
become=20
almost daily fare, and even institutions and corporations previously =
perceived=20
as the quintessence of respectability or as the darlings of the stock =
markets=20
have been tainted. A small sampling of cases will suffice to illustrate =
the=20
point. One recalls the exposure of the Lockheed Corporation in the 1 =
970s for=20
having paid $25 million in bribes to Japanese officials to ensure the =
sale of=20
its Tristar L-1011 aircraft. For over a decade the Swiss National Bank =
has been=20
dealing with revelations that it laundered the equivalent of some $4 =
billion of=20
Nazi gold, about a sixth of it from Jews destined for the death camps =
and most=20
of the remainder looted from banks in occupied countries. Furthermore, =
Swiss=20
banks have been exposed as deliberately withholding, for more than 50 =
years, the=20
contents of =E2=80=9Cdormant=E2=80=9D accounts of Holocaust victims and =
their families.<SUP><A=20
href=3D"http://www3.telus.net/studycircle/1/corruption.htm#11">11</A></SU=
P>=20
Germany=E2=80=99s GM subsidiary Adam Opel saw 65 of its executives =
investigated for=20
bribe=E2=80=91taking in the mid=E2=80=911990s. Around that same time a =
Canadian company,=20
Bre=E2=80=91X=E2=80=94which claimed to have discovered the =
world=E2=80=99s largest gold deposit in=20
Indonesia=E2=80=94perpetrated a fraud that saw stock values escalate =
rapidly and then=20
plunge scarcely two or three years later when tests from the site =
revealed that=20
it held little or no gold. Investors=E2=80=99 stocks that had traded at =
more than $200=20
per share became worthless almost overnight.</P>
<P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 6pt; TEXT-INDENT: =
0.5in">But these=20
examples of fraud and <SPAN style=3D"COLOR: #ff6600">corruption</SPAN> =
are dwarfed=20
by those contained in the names Enron, WorldCom, Tyco, Adeiphia, =
Vivendi, and=20
ImClone, which have become household words over the past year or so and =
which=20
represent the latest=E2=80=94and most spectacular=E2=80=94in a long =
string of corporate=20
scandals. They seem most notable for the massive scale of the <SPAN=20
style=3D"COLOR: #ff6600">corruption</SPAN> practiced. Astonishingly, =
Enron was=20
able to overstate its earnings by some $600 billion between 1997 and =
2001,=20
hiding huge debts through =E2=80=9Coff balance sheet =
partnerships,=E2=80=9D while WorldCom has=20
the dubious distinction of having suffered the world=E2=80=99s largest =
corporate=20
bankruptcy after the revelation that it moved costs from operating to =
capital=20
accounts to keep investors from discovering the corporation=E2=80=99s =
increasing=20
expenses and falling profits. In most of these scandals top executives=20
themselves directed the <SPAN style=3D"COLOR: #ff6600">corrupt</SPAN>=20
practices.</P>
<P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 6pt; TEXT-INDENT: 0.5in">In =
an=20
insightful editorial in the <I>International Herald Tribune</I>, William =
Pfaff=20
characterizes Enron not only as a scandal but also as =E2=80=9Cthe =
product of a=20
pathological mutation in capitalism,=E2=80=9D in which =
=E2=80=9Cowners=E2=80=99 capitalism=E2=80=9D has been=20
replaced by =E2=80=9Cmanagers=E2=80=99 capitalism.=E2=80=9D Disregarding =
the long-term interests of=20
their companies and their stockholders, these managers pursued =
short-term gains=20
with disastrous results for everyone but themselves, as share values =
plummeted=20
and employee pension funds=E2=80=94tied to company investments through =
stock=20
options=E2=80=94became worthless.<SUP><A=20
href=3D"http://www3.telus.net/studycircle/1/corruption.htm#12">12</A></SU=
P></P>
<P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 6pt; TEXT-INDENT: =
0.5in">Pfaff=20
concludes, =E2=80=9COwners=E2=80=99 capitalism failed in practice =
because the markets have so=20
diffused corporate ownership that no responsible owner exists. Managers=20
exploited that void to turn corporations into mechanisms for their =
personal=20
enrichment. This is morally unacceptable, but it is also a <SPAN=20
style=3D"COLOR: #ff6600">corruption</SPAN> of capitalism itself, and of =
the=20
society in which it functions.=E2=80=9D Reform, he asserts, =E2=80=9Cis =
useless when the system=20
itself has failed.=E2=80=9D</P></FONT></DIV>
<DIV><FONT color=3D#008000></FONT> </DIV>
<DIV><FONT color=3D#008000>more...:</FONT></DIV>
<DIV><FONT color=3D#008000><A=20
href=3D"http://www3.telus.net/studycircle/1/corruption.htm">http://www3.t=
elus.net/studycircle/1/corruption.htm</A></FONT></DIV></BODY></HTML>
------=_NextPart_000_0029_01C3D96E.55DE2E40--
.
|
|
|
Related Articles |
|
|
