We´re still in shock with the news about FIFA and their corruption operations around the world. Again corruption shows us how little we now about the world´s financial movements. Again we are surprise of the “unknown”, of another hidden truth that although has always been there, for also unknown reasons is at stage, precisely now. Leaving in evidence clearly and once again, that international mechanisms of control and accountability work under a strong arbitrary criteria, having as a direct consequence: lack of confidence in the whole system and a general sense of belonging to an unreliable system that only political opportunist moments make them awake their mechanisms.
In a poll of more than 35.000 football fans in 30 countries, 69.2% say they had no confidence in FIFA.[1] Is this fact that reassures the idea of uncertainty also at a global level that makes lose confidence on organizations and markets.
One of the strongest pillars for building a reliable, transparent and accountable global system is confidence in the markets, not only for financial goals but also in all layers of the international community. Markets work through networks in which safety and reliability help them to move forward by investing and taking risk in uncertain fields like innovation or climate change.
Conveying the idea that the system is strong and accountable to respond and protect their citizens from any kind of crisis -not only financially-, is the main challenge to address in the path to boost confidence.
The correct exercise of a democracy demands transparency and accountability from representatives and institutions either from public or private sector. A break in confidence supposes also a devastating impact in it´s economic growth. Is it shown that a corrupt country is likely to achieve aggregate development levels of 5% less than a no corrupt country and loss half a percentage point of GDP per year[2]
The World Bank sees corruption as “among the greatest obstacle to economic and social development”, an estimation puts the total amount of bribes paid in developed and developing countries in 1 Trillion dollars, about 3% of world GDP.
Is in that sense that corruption become one of the most important burden for open and transparent mechanisms that assures balanced economic-finance relationships. Indeed a corrupted system is linked directly with unhealthy economic relationships externally and unfair finance distribution internally.
Corruption is a transversal issue with an important political nature that as a difference with other economic factors, affects all the system and sectors equally, hence is paramount for an inclusive growth. The international community needs and deserve accountable & transparent organizations and governments as one of the main pillars to build a sustainable growth at a global level.
“Ethical behaviour is doing the right thing when no one else is watching, even when doing the wrong thing is legal”. Aldo Leopold
Representatives of governments and private sector have a moral responsibility to bring confidence to their citizens and an ethical responsibility towards markets. A real sustainable growth could only be achieved by joint ethical behavior. In a historical moment in which stagnation and slow recovery dominates, investment is needed more than ever and confidence become key to pump dynamism to the markets. Is in this context that international mechanisms need to tackle abusive financial practices by a stronger and closer control.
Picture: Easter Island´s truth uncovered
[1] Transparency international: http://bit.ly/1GAUmel
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