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134 Managing Conflict of InterestFigure 5: Making the Link between Contribution Levelsand Voting RecordsSource: MAPLight.org, 2007.Thus, incumbents have a huge advantage over challengers in raisingmoney. Competition in what is supposed to be a democracyis increasingly rare—especially in the House of Representatives. Infact, in more than 60% of US Congressional districts in 2006, thewinner outspent the loser by 10-to-1 or more.A Codependent Two-Way Street to Nowhere, USA?In addition to providing cash to feed the election coffers, companiesand other special interest groups regularly organize events tobuild relationships and secure face time with Congressional membersand staff to discuss and lobby on behalf of their issues. Publicofficials’ survival in office is dependent upon—and thus motivatedby—keeping such “cash constituents” happy. Conversely, specialinterestgroups are motivated to become politically active when itaffects their bottom line. For example, Microsoft Corporation, theworld’s top computer software company, is now one of the biggestADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Implementation and Enforcement Tools 135campaign contributors in Washington—an astounding fact when youconsider that Microsoft is a relatively new player on the political scene.Before 1998, the company and its employees gave virtually nothingin terms of political contributions. However, when the Department ofJustice launched an antitrust investigation into the company’s marketingof its popular Windows software, things changed. The companyopened a Washington-based lobbying office, established a politicalaction committee, and soon became one of the most generous politicalcontributors in the country. The move eventually galvanized anentire industry, as computer and Internet companies quickly movedto emulate Microsoft’s political savvy.However, Congress has recently approved ethics and lobbyingreform legislation to increase disclosure and significantly curb specialinterests’ lobbying activities, especially gifts, organized charityevents, and recreational travel. The new legislation requires federallobbyists to disclose political contributions and public officialsto declare earmarking during the appropriations process. Thesereforms also prohibit public officials from accepting free admissionat events held by charities that retain lobbyists and requires thateligible charities—not individuals or other organizations—providereimbursement for transportation and lodging.Conclusions: Democracy or “Dollarocracy”?The data suggest that there is a more than casual link betweencampaign dollars and public officials’ voting records. Special- interestgroups monitor voting records and make contributions accordingly,and public officials court special interests to remain in office. In short,money follows power, and power can be sustained only by moremoney. It is a vicious circle. Such institutional corruption can be moredangerous than individual corruption—even when no laws are broken.While transparency is absolutely essential and recent legislativereforms indicate progress, significant change in election financingand the business of policy making and appropriations is still required.Independent government agencies are needed to monitor electionsand enforce the laws. Civil society and nongovernment organizationsare needed to analyze contribution data and political voting recordsand appropriations. And a vigilant free press is critical to deliver thefacts—and their implications—to the public. If any of those ingredientsare lacking, you may not have the democracy you think you do.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
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Publications of the ADB/OECD Anti-C
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iv Managing Conflict of InterestMan
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ForewordThe Asian Development Bank
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AcknowledgmentsThe Asian Developmen
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AbbreviationsACFEADBAPSCEOCFOCOICRP
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Executive SummaryThere is growing c
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Executive Summary xvThe Organisatio
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Executive Summary xviiThe People’
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Keynote AddressesADB/OECD Anti-Corr
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Keynote Addresses xxiI, therefore,
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Keynote Addresses xxiiiConvention A
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Welcome RemarksTaufiequrachman Ruki
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Welcome RemarksArjun ThapanDirector
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Keynote Addresses xxixIt is also he
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Remarks at the Opening DinnerH. E.
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Keynote Addresses xxxiiibe struck b
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Keynote Addresses xxxvthe best huma
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Closing RemarksHidayat Nur WahidCha
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Keynote Addresses xxxixeasier than
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Chapter 1Defining conflict ofintere
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The United Nations Convention Again
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Defining Conflict of Interest 7•
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Defining Conflict of Interest 19A C
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Defining Conflict of Interest 21Gov
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Asset declaration in the Philippine
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Conflict of interest in Indonesia:
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Section 2:Implementation andEnforce
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Page 134 and 135: Private gain from public loss:How T
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Page 203 and 204: Chapter 5Codes of conduct in thepri
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Page 225 and 226: Appendix 1: Seminar agendaADB/OECD
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Appendix 185The experience of asset
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Appendix 187Detecting conflict of i
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Appendix 2: List of participantsMem
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Appendix 191Asad Ali SHAHPartner, D
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Appendix 193WaluyoDeputy of Prevent
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Appendix 195PALAUSecilil ELDEBECHEL
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Appendix 197Sandie HITOJOSenior Con
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Appendix 199TRANSPARENCY INTERNATIO
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Appendix 201Arie SISWANTOAssistant
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Secretariat 203ADB/OECD Anti-Corrup
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