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`Corruption is not capitalism's natural product, but its perversion.'1
Bribery of public officers has been an offence under Canada's criminal law since its codification in 1892.2 That offence and a collection of other littleused provisions 3 are intended to serve as a bulwark against the corruption of Canadian public officials. Until recently, however, the bribery of a foreign public official was not accorded similar, or any, treatment in Canada's criminal law.4 This void existed despite passage of the Foreign Corrupt Practices Act (FCPA) in the USA in 1977.5 The American legislation passed unanimously in both Houses of Congress, part of the post-Watergate attempt to cleanse America government of unethical behaviour and illegal conduct. It also came after a large number of high-profile companies admitted to bribing foreign officials in order to obtain large government contracts.
For many years, the USA stood alone in its attempt to legislate international ethical standards. Being alone did not sit well, however, with the American business community. Corporate America objected to the competitive advantage it felt was enjoyed by countries which did not require a similar high ethical standard. A belief gradually developed that the best way to level the playing field was not to scrap the FCPA, but to universalise its terms. The exponential increase in free-market economies after the fall of the Iron Curtain only exacerbated the need for ground rules to guide business, both domestic and foreign.
American pressure appears to have worked. In recent years numerous international organisations have studied the effects of corruption and made efforts to reduce its impact on business. The Organization of American States,8 the Commonwealth, the GB,9 the World Bank, multilateral development banks,10 the Council of Europe," the United Nations,12 the International Monetary Fund, the World Trade Organization, the European Union 13 and the Financial Action Task Force 14 have all attempted to deal with the problem. Canada has been an active participant in many of these organisations. In addition, various non-governmental organisations and pressure groups, notably Transparency International, have lobbied for change.
The international organisation which emerged as the most influential was the Organisation for Economic Cooperation and Development (OECD). At the urging of the USA, it began negotiating a convention in 1989. The OECD 15 is composed of 30...