NCJ Number
191983
Journal
Journal of Financial Crime Volume: 9 Issue: 1 Dated: September 2001 Pages: 8-21
Date Published
September 2001
Length
14 pages
Annotation
This article discusses the serious consequences of corruption on both the economic and political stability of the Asian-Pacific region, with specific emphasis on Japan and its role in causing the economic and political crisis.
Abstract
This article discusses the serious consequences faced by countries when corruption gains a significant influence over decision-makers controlling the national economy. Some of the causes of corruption in the Asian-Pacific were: (1) the absence or weakness of leadership in key positions capable of inspiring and influencing conduct mitigating corruption; (2) the weakness of religious and ethical teachings; (3) lack of education; (4) poverty; (5) absence of more severe punitive measures; (6) the structure of government; (7) the state of society; (8) colonialism; (9) absence of an environment conducive to anti-corrupt behavior; and (10) radical change. As the report's case study, Japan was seen as the largest and most successful and innovative economy in Asia; it was a model for economic development. However, Japan was also seen as having played a larger role in causing the crisis in the Asian-Pacific than any other country. The infiltration of organized crime into the legitimate business sector, along with an ambivalent approach to corruption, and the lack of adequate financial regulatory systems, undermined an economy that had achieved remarkable progress over the last 50 years. The many Asian-Pacific governments affected by the financial crisis are making substantial efforts to deal with the problem. The keys to overcoming this crisis involve greater transparency, accountability, and predictability; a fair and impartial law enforcement regime and legal system, and independent media scrutiny. Appendix and references