How fighting corruption entrenches the most corrupt

The following comes from the website of Canada's Department of Foreign Affairs. On the face of it we appear to be dealing with a well-intended if somewhat patronizing attempt to impose Dudley Do-right norms on Canadian companies and their business ventures around the world. Let's take a closer look. (Italics mine.)

Strengthening Canada’s Fight Against Foreign Bribery

February 5, 2013 - Foreign Affairs Minister John Baird today announced that the Harper government is taking further steps to combat corruption and bribery by tabling amendments to the Corruption of Foreign Public Officials Act in the Senate. He delivered the following remarks in Ottawa:

“Our government’s top priority is securing jobs, growth and long-term prosperity. In our international dealings, this takes many forms.

(Securing jobs, growth, and long-term prosperity for who? For a relatively small clique of well-established corporate entities, their shareholders and their management.)

“It involves positioning Canada as a reliable supplier of the resources emerging markets need to grow.

(Reliable supplier of resources? As in hewers of wood and drawers of water? Most of our "resources" go to the developed world. Virtually none of our resources go to "emerging markets," and when they do, the Conservative government is easily persuaded to let foreign companies bring in foreign workers, which clarifies who Baird is "securing jobs" for above. Most of Canada's resources are owned by foreign entities.)

“It involves pursuing an aggressive, pro-trade agenda.

(For the benefit of who?)

“It involves creating the conditions for Canadian businesses to succeed.

(Aha! How do we "create" those conditions?)

“But our government also expects Canadian business to play by the rules.

(Here's the rub; whose rules?)

“Canadian companies can compete with the best and win fairly.

(A harmless bit of nationalistic jingoism, but we're getting to the nitty-gritty...)

“To signal our commitment and our expectation that other countries do the same, I am pleased to announce that our government is redoubling our fight against bribery and corruption.

“Today, reforms are being introduced in the Senate that will further deter and prevent Canadian companies from bribing foreign public officials. These amendments will help ensure that Canadian companies continue to act in good faith in the pursuit of freer markets and expanded global trade.

“Canada is a trading nation. Our economy and future prosperity depend upon expanding our trade ties with the world. This, we hope, is a good faith sign that Canada’s good name retains its currency.”

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In the first place, while Baird may sincerely harbour delusions about "signalling... our expectation that other countries" play by the same rules, they don't and they won't. In the international arena Canadian mining companies and engineering conglomerates are up against competition from the US, Israel, Brazil, Germany, South Korea, and so on, none of which are bound by Canadian law. The only reason serious Canadian-based international players ever became that are because they were spreading the schmier-geld around like everybody else. 

The recent revelations about SNC Lavalin make a great example. Getting billion dollar contracts sometimes takes millions of dollars of "bribes."

But whatever else he is, Baird is not a stupid man. He knows full well that the big dogs won't be effected by this legislation. The SNC Lavalins and Ledcors and so on can pay their schmier-geld legitimately. Legitimate lobbying. Legitimate consulting contracts. Legitimate advisory fees.

At the highest levels, US conglomerates have Hilary Clinton making their sales calls. That's all perfectly legitimate. In Canada Baird and Harper do the same thing for the big Canadian multi-nationals. All totally legitimate. 

What this legislation is intended to do is keep the competition out, the little guys, the young entrepreneurs who want to do an end run around the sclerotic status quo. Guys like Dan Gertler or Brad Griffiths.

So the Harper gang puts through this bit of legislative tomfoolery designed to cast them as moral exemplars, while the real purpose of this initiative is to protect the establishment and keep the new guys out of the game.