1. Corruption &
Environmental Degradation
A project for:
Transparency
International
Client Briefing
May 3, 2006
Jessica Dillon, Karma Ekmekji, Annie Feighery, Rachael Garrett, Matt Gray, Taki
Johnson, Suzanne Jones, Thomas Legge, J.P. Leous, Arezou Raeisghasem, Karen Reilly
Advisor: Professor Sara Tjossem

2. Overview
• Our project
• Environmental governance
• Sector analysis
• Conclusions
• Recommendations
2

3. Introduction
For over a decade TI has been a leader in
combating corruption and promoting good
governance in:
• Politics
• Public contracting
• Private contracting
• International conventions
•
Environment
Access to information
• Aid and corruption
• Education
• Health
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4. Corruption Defined
“Corruption is the misuse of entrusted
power for private gain”
– Transparency International
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5. Costs of Corruption
• Obstructs democracy
• Inhibits development
• Leads to apathy and distrust
• Degrades the environment
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6. Our Project
1. How does environmental corruption occur?
2. What are the costs of environmental corruption?
3. What are the areas for intervention?
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7. Methodology
• Looked globally & by sector
• Reviewed existing studies on corruption,
good governance, and conservation
• Researched cases through media and
social justice organizations
• Conducted face-to-face and phone
interviews
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8. Global Hotspots and Corruption
Low CPI score =
High Perceived
Corruption
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9. Hotspots Analyzed in this Report
Mountains of Southwest China
Caucasus
Tropical Andes
Guinean Forests
Sundaland
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10. Sectors: Infrastructure
Dams
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11. Sectors: Renewables
Logging
Poaching
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12. Sectors: Non-renewables
Oil Extraction
Mining
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13. Economic Political Social
Factors Factors Factors
Geography and Resource Base
ption Corruption
Corru
Environmental Governance
Feedback
Environmental
wellbeing
Social and Economic Welfare
13 13

14. Economic Political Social
Factors Factors Factors
Geography and Resource Base
ption Corruption
Corru
Environmental Governance
Feedback
Environmental
wellbeing
Social and Economic Welfare
14 14

15. Findings: Infrastructure
How corruption occurs:
– Project design
– Disbursement of funds
Costs of corruption:
– Misallocation of funds
– Ecological damage
– Displacement
Areas of intervention:
– Transparency in project development
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16. Case Study: Pubugou Dam in China
1) How corruption occurred:
•Chinese industries
•Local officials
•Misappropriation of funds
3) Interventions:
2) Costs of corruption: •Improving disclosure
•Substandard living conditions •Facilitating public
•Environmental degradation appeal process
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17. Findings: Renewables
How corruption occurs:
– Weak enforcement of regulations
– Demand for illegal products in export markets
Costs of corruption:
– Floods, landslides, and forest fires
– Species loss
Areas of intervention:
– Community action
– Local watch groups
– Certification
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18. Case Study: Logging in Cameroon
1) How corruption occurred: 2) Costs of corruption:
•International logging companies •Increased road building
•Concessions •Forest degradation
•Unsustainable logging practices •Species loss
3) Interventions:
•Code of conduct
•Certification of timber
•Technical assistance to government
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19. Findings: Non-Renewables
How corruption occurs:
– Concessions and contracting
– Large discretionary cash flows
– Weak enforcement of regulations
Costs of corruption:
– Pollution and species loss
– Human health impacts
Areas of intervention:
– Extractive Industries Transparency Initiative
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20. Case Study: Oil in Ecuador
1) How corruption occurred: 2) Costs of corruption:
•Chevron-Texaco •Pollution
•Ecuadorian judiciary •Cancer and birth defects
•Illegal dumping
•Cover-up of impacts
•Inadequate compensation
3) Interventions:
•Increase media exposure
•Facilitate public appeal process
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21. General Findings
1. Environmental corruption is prevalent where:
– Economic development is low
– Democratic traditions are weak
– Governance structures are weak
2. Monopolies create opportunities for corruption
3. International demand drives corruption
4. Countries dependent on natural resource
extraction experience high levels of corruption
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22. Policy Recommendations
1. Prioritize preventative over reactive advocacy
2. Expand TI’s existing information network
3. Expand education, TI’s seventh global priority,
to include the environment
4. Establish collaboration with conservation and
environmental organizations
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23. Summary
1. How does environmental corruption occur?
– Project planning, contracting, legislation, enforcement, and bribery
2. What are the costs of environmental corruption?
– Pollution, species loss, displacement, and human health impacts
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24. Summary
3. What are the areas for intervention?
– Local empowerment
– Public access to important information
– Development of
uncomplicated and
unambiguous rules
These linkages indicate that
the environment should be the
subject of a future Global
Corruption Report.
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25. Questions?
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26. Areas for Further Research
• Internet publications of
environmental disclosure documents
• Corporate self-regulation and self-
monitoring
• Utilization of geospatial technologies
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27. Credits
• Template mining:
http://eesc.orst.edu/salmon/images/mining.jpg
• Columbia University logo:
http://www-unix.mcs.anl.gov
• Transparency international logo:
http://www.emins.org
• Logging:
http://www.landscouncil.org/fwatch/pre-myrtle%2520creek
%2520pix/&h=681&w=1006&sz=164&tbnid=Tdzr05ZFJ2YULM:&tbnh=100&tbnw=149&hl=en&start=2&prev=/images%3Fq
%3Dlogging%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DG
• Dams:
http://www.hamptonhillps.org.uk/exhibition/2004/dams.jpg
• Mining:
http://www.hdprint.co.uk/ftp/Colorado/331%20-%20Old%20mining%20facility.jpg
• Oil pond:
http://www.rainforestweb.org/images/cat/texacopond-big.jpg
• Axis of Oil:
http://earthhopenetwork.net/bush%20art/bush_axis_of_oil.jpg
• Global Corruption Report:
http://www.beheard.com/beheard/images/items/0745323960.jpg
• Title Page and questions slide:
http://www.chevrontoxico.com/
• Case Study: Oil
http://www.michiganpetroleum.com/texaco.jpg
http://www.alpineascents.com/graphics/flags/ecuador-flag.gif
• Case Study: Logging
http://www.forestmonitor.org/reports/solddownriver/cameroon.htm
• Case Study: Dams
www.eng.ucalgary.ca
english.epochtimes.com
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