Corruption
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The Program on Capitalism and Democracy
presents a two-day conference
Co-sponsored by the Stanford Graduate School of Business (GSB) and the Center on Democracy, Development and the Rule of Law (CDDRL)

Global Capitalism, Trust, and Accountability conference

Are democratic governments equipped and willing to hold global capital accountable, and does their failure to do so affect citizens’ trust?

Global capitalism has reshaped trade, economic priorities, and financial flows — and, in doing so, has also transformed societies and politics. However, the transnational nature of global capital has presented an intellectual and policy challenge as corporate activities and corruption adapt to the global environment. While activists, journalists, and scholars have investigated and publicized these issues, much work remains to develop coherent analytical understandings of these problems.  

Democratic governments often struggle to establish and enforce proper rules for corporate malfeasance and corruption. Domestic regulations present jurisdictional challenges, and corporate law, which enables corporations, has yet to be effective in preventing them and their leaders from dodging accountability in global markets. The world of global capital is opaque, designed explicitly to hide assets or evade the reach of governments. The financialization of the global economy has expanded the power not only of banks but also of professional services that facilitate ties between wealthy individuals, political leaders, and tax havens or shelters.

This conference brings together scholars across the disciplines of law, business, social sciences, and history, as well as practitioners and journalists, to explore the challenge of creating trust and accountability in a system dominated by global capitalism. In convening together, we aim to advance research, education, and policy on these critical issues.

Organizers

Anat Admati (George G.C. Parker Professor of Finance and Economics, GSB, and Faculty Director of the Capitalism and Democracy Program at CDDRL) and Didi Kuo (Center Fellow, CDDRL)

FRIDAY, APRIL 4

 

1:30 - 1:45 — Introduction and Opening Remarks
 

  • Anat Admati, George G.C. Parker Professor of Finance and Economics, Stanford Graduate School of Business
  • Didi Kuo, Center Fellow, Freeman Spogli Institute for International Studies
  • Kathryn Stoner, Mosbacher Director, Center on Democracy, Development and the Rule of Law
  • Peter DeMarzo, Philip H. Knight Professor and Dean of the Graduate School of Business (Interim)


1:45 - 3:15 pm Session 1 — Why Trustworthy Governments are Essential
 

Global capitalism works best for society if governments can be trusted to provide public goods and set and enforce proper rules to enable markets and corporations to succeed while protecting human rights and the environment. This panel examines the historical development of capitalism and explores what it takes for governments to earn the trust needed. It also reflects on how global capitalism today may enable corruption and undermine trust in democratic governments.

Panelists:

  • Vic Khanna (Michigan Law)
  • Naomi Lamoreaux (Yale History)
  • Alexander Cooley (Barnard Political Science)


Discussant: Rick Messick (Global Anticorruption Blog)
Moderator: Curtis Milhaupt (Stanford Law)

3:15 - 3:45 — Break

 

3:45 - 5:15 pm — Session 2: Opacity and Illicit Flows


The financialization and globalization of capital have increased opportunities for illicit financial flows, money laundering, and corruption. How should scholars conceptualize and measure these problems and the harm they cause? What is the role of anonymous and multinational corporations and secrecy jurisdictions in facilitating, exacerbating, and growing opportunities to evade laws? What is the role of cryptocurrencies?

Panelists:

  • Dan Neilson (UT Austin Political Science)
  • Gary Kalman (Transparency International US)
  • Brooke Harrington (Dartmouth Sociology)
     

Discussant: Mark Weidemaier (UNC Law)
Moderator: Louise Story (journalist, author, media leader)
 

5:30 - 6:30 pm — Virtual Keynote


Tom Wright
Co-author of the New York Times bestseller, 'Billion Dollar Whale;' Wall Street Journal's Asia Economics Editor (2013 - 2019); and Co-Founder of Project Brazen, the production studio that launched the hit podcast, 'Fat Leonard.'
 

6:30 — Reception and Dinner
 



SATURDAY, APRIL 5
 

8:00 - 8:30 am — Breakfast
 

8:30 - 9:15 am — Keynote


Judge Jed Rakoff
Senior Judge of the United States District Court for the Southern District of New York since 2010

9:15 - 10:45 am — Session 3: The Law and Politics of Fighting Corruption


Can governments and global institutions address corruption, defined as the abuse of power in its many forms, within and across jurisdictions through laws? This panel examines the mechanisms and tools that are available to prosecutors and policymakers to investigate and penalize corruption in the private sector and government. It also explores the political challenge of ensuring that the legal tools are available and utilized properly to reduce corruption.

Panelists:

  • Kevin Davis (NYU Law)
  • Gerhard Schick (co-founder and co-head of Finanzwende Recherche)
  • John Githongo (Anti-corruption activist)
     

Discussant: Vikrant Vig (GSB)
Moderator: Luigi Zingales (Chicago)

10:45 - 11:15 am — Break
 

11:15 am -12:45 pm — Session 4: Greed, Norms, Culture, and Trust


Norms and culture, both in corporations, in government bodies, and in society at large, play a significant role in promoting trust and preventing misconduct. Global capitalism reflects norms, but it also reshapes them. This panel investigates the challenges that arise in building cultural norms in a global context.

Panelists:

  • Norman Eisen (Brookings)
  • Peter Solmssen (Former Managing Board Member and General Counsel Siemens AG)
  • Miriam Baer (Brooklyn Law)
     

Discussant: Paola Sapienza (Hoover Institution)
Moderator: Didi Kuo (CDDRL)

12:45 - 1:45 pm Lunch
 

1:45 - 3:15 pm — Session 5: Corporate Misconduct and the Law


What are the tools for deterring corporate misconduct, and are these tools being used effectively? This panel of experts on white-collar crime will explain why laws and enforcement mechanisms may fail to deter corporate misconduct and why corporate leaders are rarely appropriately held accountable. What is the interplay of institutions, politics, and power that undermines the rule of law in the corporate context?

Panelists:

  • Ellen S. Podgor (Stetson Law School)
  • Elizabeth Pollman (Penn Law School)
  • Fabio De Pasquale (Prosecutor, Milan Italy)
     

Discussant: Jennifer Taub (Wayne Law School)
Moderator: Anat Admati (GSB)

3:15 -3:45 pm — Break
 

3:45 -5:15 pm — Session 6 (Round Table): What Academics, Activists, and the Media Can Do


This roundtable will enable all participants to brainstorm how academics, activists, and journalists can work together to accomplish shared goals around global capitalism and accountability. How are each sector's resources, voices, and contributions best deployed? How might individuals and organizations align their work and objectives? And most importantly, how might we create a more trustworthy and fair economic system for the 21st century?

Moderator: Bethany McLean (Journalist, author)

5:15 - 5:30 pm — Closing Remarks
 

5:30 pm — Reception and Dinner

In-person: By invitation only.

Virtual: Open to the public

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Clifton B. Parker
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María Corina Machado, Venezuela’s popular democracy leader, told a Stanford audience that support from the global community and the U.S. is a moral imperative for those protesting Nicolás Maduro’s despotic government.

Machado engaged in a conversation on November 18 with Larry Diamond at an event hosted by the Center on Democracy, Development and the Rule of Law. Diamond is the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies. They discussed Venezuela’s current political climate, challenges, and broader strategies for fostering democratic transitions in authoritarian environments.

Maduro’s attempts at electoral fraud overshadowed Venezuela's presidential election on July 28, 2024. Afterward, the Venezuelan democratic movement provided evidence showing that their candidate, Edmundo González, had won with about 70% of the vote. Since then, the Maduro regime has stifled the opposition and thwarted democratic reforms as he seeks to regain office in January. Meanwhile, Machado has been forced into hiding to evade arrest by Maduro's regime but remains resolute in her decision to stay in Venezuela, where she continues to lead the movement.

In 2023, Machado won the Venezuelan opposition primaries with 93% of the vote. But the Maduro regime immediately, and illegally, disqualified her from running in the 2024 presidential election. She then took charge of revitalizing the country’s pro-democracy movement, rebuilding it from the ground up and infusing it with renewed purpose.

In introducing Machado, Kathryn Stoner, the Mosbacher Director of CDDRL, said, “Her leadership has been a beacon of hope for millions of Venezuelans as she continues to inspire them in the fight against authoritarianism.”

‘We surprised everyone’


Machado spoke about the election aftermath and a “window of opportunity” to act now to safeguard democracy. “The final outcome of this process is certainly existential for the Venezuelan people. It is critically strategic for the region and of great importance for all Western democracies, especially for the United States, and that's why we've received bipartisan support.”

María Corina Machado addresses a Stanford audience via video. Rod Searcey

Today, Venezuela ranks last on the World Justice Project’s Rule of Law index — 142 out of 142 countries. “Every single democratic institution has been devastated,” said Machado, describing the current situation as a “full-fledged tyranny” and adding that 8 million people have been forced to flee her country.

Despite such conditions, she said, in the past two years, Venezuelans have built up a democratic movement — “they told us it was impossible” — that reflects a deeper social response. “We decided to understand, to heal, and to trust each other.”

The regime underestimated the growth of this movement, she said. “We defeated the regime in the streets and in the hearts of Venezuelan people. We defeated them before in the spiritual dimension and then in the electoral process. And we've surprised everyone.”

They created a well-organized network of citizen volunteers who could be deployed in every single polling station and other places, all of whom were profoundly motivated around the cause, Machado said. “We did it without media at all,” since Maduro's government would not allow her to appear in traditional media channels and the campaign couldn't run ads on social media — there was no money.

Machado said, “We united a country around common values — human dignity, solidarity, justice, private property, and freedom. We united Venezuela around a profound desire: We wanted our kids back home; we wanted our families reunited.”

In the election, González won by a landslide, she said, roughly 70 percent to Maduro’s 30 percent. Immediately, the regime struck back, detaining and arresting thousands of pro-democracy advocates and even torturing some people.

“The reaction of the regime was ferocious,” she said. “We are facing a situation where the regime wants to create terror and totally paralyze this movement.”

But the Venezuelan pushback to the Maduro repression has been dramatic, she said. Machado estimates that if the election were held today, the pro-democracy candidate would get 90 percent of the vote.

“We have a united opposition, more than ever before,” she said, noting vows of support from the international community. January 10 is the day when Maduro would be sworn in again as president. “We will never give up, and I'm sure freedom will prevail in our country.”

We have a united opposition, more than ever before. We will never give up, and I'm sure freedom will prevail in our country.
María Corina Machado
Leader of Venezuela’s Democratic Movement


International action


“The challenge,” Diamond said, “is to get President Maduro, who has lost the election, to acknowledge that he's lost and leave power.” He asked Machado what the international community should do. (On November 19, a day after the CDDRL event, the U.S. formally recognized González as the president-elect.)

She responded, “We have to make these people understand that they will be held accountable. If they keep repressing our people, international justice should act immediately, and that hasn’t happened yet.”

On top of this, she added, Maduro’s ties to criminal activities and black markets need to be examined by international partners. Even the Venezuelan military largely supported the pro-democracy opposition.

“The (global) law enforcement approach can be more comprehensive, involving different agencies and different countries, so these individuals understand this regime is not sustainable from financial, political, and human perspectives,” she said.

Diamond asked if criminal indictments of members of the Maduro regime could be on the table, whether by the United States, European countries, or the International Criminal Court.

Machado acknowledged this point and recommended a few international strategies: Maduro has to be totally isolated, and González has to be recognized as the president-elect; a global law enforcement approach needs to crack down on Maduro’s criminal activities; the International Criminal Court needs to make a decision on the election; and every democratic government in the world needs to advocate for a negotiated transition for Venezuela to peacefully move ahead.

Democracies worldwide


During the Q&A portion of the event, a student audience member asked what the expatriate Venezuelan community should know and do about the situation.

Machado said, “One of our main assets now is this great diaspora that has turned Venezuela into a global cause. People are preparing abroad, learning, and getting ready to come back and build a great society.”

She added that her country’s abundant oil reserves could literally transform Venezuelan society if used wisely, unlike under Maduro’s tenure, and be used as a key element to fund the country's energy transition.

As Stoner noted in her opening remarks, “The struggle for democracy in Venezuela is not just a national issue — it's a global one. The fate of Venezuela speaks to the broader challenges that democracies are facing worldwide, including our own.”

You can read more about this event in The Stanford Daily.

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A person cast a vote during the presidential elections at Escuela Ecológica Bolivariana Simón Rodríguez on July 28, 2024 in Fuerte Tiuna, Caracas, Venezuela.
Commentary

Exploring the Implications of Venezuela’s 2024 Presidential Election with Héctor Fuentes

Fuentes, a lawyer, human rights advocate, and agent of social change in Venezuela, is a member of the 2024 class of Fisher Family Summer Fellows at the Center on Democracy, Development and the Rule of Law.
cover link Exploring the Implications of Venezuela’s 2024 Presidential Election with Héctor Fuentes
Kathryn Stoner and Leopoldo López
News

Venezuelan opposition leader calls on students to fight for global freedom

Leopoldo López expressed fear about the global rise of a “network of autocracies." He encouraged Stanford students to champion democracy and freedom across the globe.
cover link Venezuelan opposition leader calls on students to fight for global freedom
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María Corina Machado, the leader of the Venezuelan pro-democracy movement, suggests that a strong international response to Venezuelan authoritarianism will help overcome electoral fraud against democracy in her country.

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Maria Machado event

This past summer, Venezuela's presidential election was overshadowed by Nicolás Maduro's attempt at large-scale electoral fraud. Despite these efforts, the Venezuelan democratic movement successfully provided evidence showing that their candidate, Edmundo González Urrutia, had won with nearly 70% of the vote. In response, the Maduro regime has escalated its repression of opposition leaders and advocates of democratic reforms, deepening political tensions and raising serious concerns about the country's democratic future.

On Monday, November 18, the Center on Democracy, Development and the Rule of Law is honored to host María Corina Machado, the leader of the Venezuelan pro-democracy movement and the main architect of the July 28 electoral victory, for a video address to the Stanford community sharing her experiences and perspectives on sustaining democratic resilience in the face of authoritarianism. The conversation will be moderated by Larry Diamond, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI). Together, they will explore Venezuela’s current political challenges, the critical role of civic engagement, and strategies for fostering democratic transitions in restrictive environments.

The event will conclude with an interactive Q&A session, allowing students, faculty, and the greater Stanford community to engage directly with Ms. Machado and gain deeper insights into her experiences.

This event is co-sponsored by the Center on Democracy, Development and the Rule of Law (CDDRL) and the Neukom Center for the Rule of Law.

speakers

María Carina Machado

María Corina Machado

Leader of the Democratic Movement in Venezuela

María Corina Machado is the leading figure of the Venezuelan democratic movement and was the central architect of the historic victory of Edmundo González in the July 28th, 2024, presidential election. Her leadership and vision unified Venezuela's pro-democracy forces during a pivotal moment in the country's history.

Machado won the Venezuelan opposition primaries on October 22nd, 2023, with an overwhelming 92.35% of the vote. Despite her landslide victory, she was illegally disqualified from running by the regime in a blatant move to undermine the democratic process. Undeterred, she continues to lead the fight for freedom and democracy in Venezuela, inspiring millions to stand up against authoritarianism.

Her tireless work in the face of adversity has made her a symbol of hope and resistance for Venezuelans and a crucial voice in the global conversation on democracy and human rights.

Machado holds a degree in Industrial Engineering from the Universidad Católica Andrés Bello (UCAB) and a specialization in Finance from the Instituto de Estudios Superiores de Administración (IESA). She has also taught Human Resources Management in the Industrial Engineering Department at UCAB. In 2009, she participated in the prestigious World Fellows Program at Yale University. She is the recipient of the 2024 Sakharov Prize, presented by the European Parliament, and the 2024 Václav Havel Human Rights Prize, presented by the Parliamentary Assembly of the Council of Europe (PACE) in Strasbourg.

Machado is also the founder and national coordinator of the political movement Vente Venezuela and co-founder of the Venezuelan civil association Súmate.

Professor Larry Diamond

Larry Diamond

Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI)

Larry Diamond is William L. Clayton Senior Fellow at the Hoover Institution, Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI), and a Bass University Fellow in Undergraduate Education at Stanford University. His research focuses on global trends affecting freedom and democracy, and U.S. and international policies to advance democracy and counter authoritarian influence. He was the founding coeditor of the Journal of Democracy and he remains a consultant to the National Endowment for Democracy. Among his books is Ill Winds: Saving Democracy from Russian Rage, Chinese Ambition, and American Complacency.

Larry Diamond
Larry Diamond

Hauck Auditorium
David and Joan Traitel Building, Hoover Institution (435 Lasuen Mall, Stanford)

María Corina Machado
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Democratic values are eroding just as citizens perceive increasing corruption, with numerous cases implicating the highest-level politicians. Could perceived increases in apex corruption be weakening democracy? We first present event study analyses of more than 170 high-profile corruption scandals involving some of the most prominent politicians in 17 Latin American countries. We show that in the aftermath of such apex corruption scandals, support for democracy falls by 0.07𝑠𝑑, support for authoritarianism rises by 11% and violent protests rise by 70%. We complement these results with a field experiment in Mexico. Randomized exposure to footage of apex corruption scandals, particularly implicating politicians known for their anticorruption platforms, decreases individuals’ support for democracy by 0.15𝑠𝑑, willingness to trust politicians and neighbors in incentivized games by 18% and 11%, volunteering as election observers by 45%, and actual voter turnout by about 5𝑝𝑝, while raising stealing from local mayors by 4%. The undermining of democratic values produces latent effects that even cumulate four months later. Seeking solutions, priming national identity proved an unsuccessful antidote, but providing exposure to national stock index funds holds some promise.

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Eduardo Rivera
Enrique Seira
Saumitra Jha
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Marco Widodo
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The second of four panels of the “America Votes 2024” series featured critical reflections on the reliability of forecasting models, declining trust in American elections, and reforms to combat polarization. Moderated by Michael Tomz, the William Bennett Munro Professor in Political Science and Chair of Stanford’s Department of Political Science, the panel featured Stanford scholars Brandice Canes-WroneJustin Grimmer, and Larry Diamond, each drawing on their research to address the complexities shaping the 2024 election. The “America Votes 2024” series is co-organized by CDDRL, the Hoover Institution’s Center for Revitalizing American Institutions, and the Institute for Research in the Social Sciences.

Can We Trust The Polls?


Brandice Canes-Wrone, Professor of Political Science and Director of the Hoover Institution’s Center for Revitalizing American Institutions, provided a succinct overview of different forecasting models, touching on their limitations and recent adaptations. Historically, models like that of economist Ray Fair have centered their election predictions on fundamentals like the economy. These models face two main limitations. First, they do not incorporate opinion polls on the candidates themselves. Second, even if voters care about economic performance, increasing partisanship has skewed subjective perceptions of the economy. Some forecasting models have responded by weighing partisanship more in their calculations, though these poll-reliant frameworks present their own limitations as well. Currently, even the most accurate models suggest this uniquely tight race remains too close to call.

Shifting to the two candidates themselves, Canes-Wrone points out that campaign messaging from both sides aligns with the expectations of most analysts. Reacting to high inflation rates, Donald Trump has centered his campaign on economic promises while Kamala Harris tries to “turn the page” to distance herself from President Joe Biden. Both their campaign strategies echo a historic shift from persuading swing voters to mobilizing their bases. Trump has taken a rather unconventional approach to the ever-important ground game, largely outsourcing mobilization to Super PACs. As Canes-Wrone argues, however, the factors determining presidential outcomes have changed far less than the rest of US politics in the last 50 years.

Brandice Canes-Wrone presented on "The 2024 Presidential Election in Historical Context." Brandice Canes-Wrone presented on "The 2024 Presidential Election in Historical Context." Nora Sulots

Restoring Trust in Elections


Americans have shown declining levels of trust in elections. While many picture January 6th as the root of this distrust, Justin Grimmer — Morris M. Doyle Centennial Professor of Public Policy and Senior Fellow at the Hoover Institution — argues this turning point occurred two months earlier when Trump falsely declared victory on election night. Since then, several Republican politicians have denounced electoral losses with a series of expansive voter fraud accusations. Some Democrats have also begun to mirror these undemocratic maneuvers under a different rhetoric.

Grimmer warns that if Trump were to win the election by a narrow margin, Democrats might argue that voter suppression caused them to lose. Yet, according to Grimmer, neither argument — voter fraud nor voter suppression — holds enough weight to justify overturning the election result. Studies show that election reforms provide no partisan benefit to either party. To restore Americans’ trust in their electoral institutions, both candidates must honestly accept the results of the November election, regardless of the outcome.

Justin Grimmer presented on "Vote and Voter Manipulation." Justin Grimmer presented on "Vote and Voter Manipulation." Nora Sulots

Ranked Choice Voting to Combat Polarization


Larry Diamond, Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI) and William L. Clayton Senior Fellow at the Hoover Institution, echoed Canes-Wrone and Grimmer in emphasizing the apparent hyper-partisanship and institutional distrust endangering American democracy. Diamond argued that, despite centuries of center-leaning politics under the Electoral College, this system now serves to heighten the social, economic, and informational factors driving polarization. The two-party dominant system is in dire need of structural reforms.

Diamond advocated for the adoption of Ranked Choice Voting (RCV) to reduce polarization. RCV is hardly a panacea, but it offers alternatives to bipartisanism by making room for moderate candidates, incentivizing parties to form broad coalitions, and affording voters more choices on their ballots. This transition, Diamond noted, is easier said than done as the polarized electorates that would benefit most from RCV are likely also most opposed to it. Beyond state-level efforts, Diamond stressed the need for bottom-up mobilization and education initiatives to accompany the implementation of RCV. 

Larry Diamond presented on "Depolarizing American Democracy: Two Reforms." Larry Diamond presented on "Depolarizing American Democracy: Two Reforms." Nora Sulots

The upcoming elections present both familiar and unprecedented challenges to American democracy. Economic fundamentals and campaign strategies have thus far reflected predictable historical trends, but bipartisan polarization and institutional distrust are at all-time highs. From structural reforms to personal integrity, everyone — states, media outlets, candidates, and voters — is responsible for safeguarding democracy. 

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America Vote 2024 Part 1 panel with Kathryn Stoner, Beatriz Magaloni, Nate Persily, and Shanto Iyengar
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“America Votes” in An Age of Polarization and Democratic Backsliding

The first of four panels of the “America Votes 2024: Stanford Scholars on the Election’s Most Critical Questions” series examined the changing political and global landscape shaping the upcoming U.S. presidential and congressional elections.
cover link “America Votes” in An Age of Polarization and Democratic Backsliding
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Creating a Culture of Civic Engagement

Across campus, the Stanford community is preparing for the November election and beyond with an array of educational, civic engagement, and get-out-the-vote efforts.
cover link Creating a Culture of Civic Engagement
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Commentary

Stanford Scholars Discuss What’s at Stake in the 2024 U.S. Presidential Election

In a panel moderated by Didi Kuo, Bruce Cain, Hakeem Jefferson, and Brandice Canes-Wrone discussed the structural features of American democracy and addressed the issues, strategies, and stakes central to November’s race.
cover link Stanford Scholars Discuss What’s at Stake in the 2024 U.S. Presidential Election
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Moderated by Michael Tomz, the William Bennett Munro Professor in Political Science and Chair of Stanford’s Department of Political Science, the second panel in our series featured Stanford scholars Brandice Canes-Wrone, Justin Grimmer, and Larry Diamond, each drawing on their research to address the complexities shaping the 2024 election.

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Sidney Suh
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After more than a decade of authoritarian rule under President Nicholás Maduro, the Venezuelan elections on July 28, 2024, were domestically and internationally regarded as a potential turning point in the country’s history. Within Venezuela’s borders, hyperinflation has gripped the economy due to poor governance, rampant corruption, and Venezuela’s excessive dependence on oil exports — descending the country into political and economic chaos. Since 2014, more than 7 million people have fled the country in a mass emigration crisis. Experts estimate that an additional 18-25% of the population is considering fleeing if Maduro remains president, putting neighboring Latin American countries and the United States at risk of destabilization as border pressures increase.

Héctor Fuentes

Héctor Fuentes, a member of the 2024 class of Fisher Family Summer Fellows at the Center on Democracy, Development and the Rule of Law (CDDRL), is a lawyer, human rights advocate, and agent of social change in Venezuela, dedicated to bottom-up national transformation. He serves as the executive director of EstadoLab, a think-and-do tank focused on state fragility and the reconstruction of democratic governance. In a conversation earlier this week with Michael McFaul, Director of Stanford’s Freeman Spogli Institute for International Studies (FSI), Fuentes explained, “People are not leaving because the situation is bad, they’re leaving because they don’t see a future for their children.”

Although opposition leader Maria Corina Machado was banned from the presidential ballot, her endorsed substitute, Edmundo González, ran and received popular support from the public. Fuentes posits that the Maduro administration needed to give its base the illusion of legitimacy through the most recent elections, although this did not preclude widespread electoral irregularities. From delaying voting in centers where the opposition was grouped to forcefully recollecting boxes containing paper voting records, evidence has emerged of falsified results. After counting 80% of the ballots, the National Electoral Council (CNE) declared Maduro the winner with 51.2% of the votes compared to González’s 44.2%. However, independent research polls conducted in Venezuela containing over 7,000 responses from 100 centers certify that González won by a landslide majority.

How can Venezuela move forward?


Going forward, Fuentes argues that the key to revitalizing the health of Venezuelan democracy is normalizing economic and political ties to global actors. From an international standpoint, measures such as international condemnation of Maduro’s falsification of election results, strategic and massive sanctions, extending a “golden bridge” to Maduro’s administration, vigilance regarding human rights violations, and providing humanitarian aid to Venezuela will be essential.

Despite the government-controlled election authority’s refusal to release detailed results from the election, Fuentes echoes a rousing call that Machado often shares with her followers that has fueled his fight for another day: “Believe in your people.”

Further Commentary


Fuentes also sat down for an interview with Francis Fukuyama, the Olivier Nomellini Senior Fellow at FSI, to discuss why there is strong reason to believe this result was fraudulent. You can watch the interview below and read more in the Frankly Fukuyama column in Persuasion.

2022 Summer Fellow Jesús Armas, a Venezuelan activist and organizer of the María Corina Machado campaign in Caracas, also shared his reflections in this op-ed and with The Washington Post (here and here).

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Fisher Family Summer Fellows Class of 2024
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Announcing the 2024 Cohort of the Fisher Family Summer Fellows on Democracy and Development Program

In July 2024, the Center on Democracy, Development and the Rule of Law will welcome a diverse cohort of 26 experienced practitioners from 21 countries who are working to advance democratic practices and economic and legal reform in contexts where freedom, human development, and good governance are fragile or at risk.
cover link Announcing the 2024 Cohort of the Fisher Family Summer Fellows on Democracy and Development Program
Kathryn Stoner and Leopoldo López
News

Venezuelan opposition leader calls on students to fight for global freedom

Leopoldo López expressed fear about the global rise of a “network of autocracies." He encouraged Stanford students to champion democracy and freedom across the globe.
cover link Venezuelan opposition leader calls on students to fight for global freedom
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Fuentes, a lawyer, human rights advocate, and agent of social change in Venezuela, is a member of the 2024 class of Fisher Family Summer Fellows at the Center on Democracy, Development and the Rule of Law.

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Rachel Owens
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Is Ukraine too corrupt to be a part of the European Union? In a recent Rethinking European Development and Security (REDS) seminar talk co-hosted by CDDRL and The Europe Center, Maria Popova, McGill University Associate Professor of Political Science, assessed how serious the issue of Ukrainian corruption really is. While some observers have claimed that Ukraine’s corruption renders it unprepared for EU accession, Popova’s research suggests otherwise. Contrasting Ukraine to recent EU entrants — Bulgaria, Romania, and Croatia — she finds that corruption indices are not very helpful in drawing reliable conclusions.

In all four said countries, corruption is touted as the most salient issue, with strikingly similar scandals occurring across them. Over the last ten years, Ukraine has developed an extensive anti-corruption infrastructure, forming institutions for the prevention, investigation, and prosecution of corruption cases, as well as for asset recovery. These institutions have produced mixed results, and issues of political competition between institutions have tainted their wider reputation, with the National Agency for Prevention of Corruption receiving the most positive feedback. Innovative e-procurement systems like ProZorro have been internationally praised. Ukraine is unique in that its anti-corruption infrastructure came well before attempting EU accession. 

Bulgaria, on the other hand, established its anti-corruption agencies ten years after becoming an EU member. These institutions have since become politically compromised; so much so that anti-corruption reformists recently forced their abolition. 

In Romania, institutions were created around the time of accession and have been successful in holding corrupt oligarchs accountable. Similarly, Croatia’s anti-corruption reforms proceeded during accession negotiations.

Although the four countries adopted similar anti-corruption institutional reforms, today Ukraine tracks as significantly more corrupt than the EU members across measures of regime, public sector, executive, and political corruption, even though it is cleaner than Romania was when it started accession negotiations, more corrupt than Bulgaria was, and equally corrupt as Croatia at its start of negotiations. Why? Popova argued that the indices are fundamentally non-comparative and thus need to be taken with a grain of salt. The score for each country is determined by experts that focus exclusively on that country, who consider variation in corruption over time only. Moreover, the abstract conceptual definition of corruption is applied to their narrow case knowledge and experience and thus reflects local, rather than generalizable conceptualization. 

While index scores correlate with local perceptions, this, too, may just reflect a narrative on the ground. If the local narrative is that the country is highly corrupt, the population will likely perceive it to be, with no sense of its real magnitude. 

When analyzing Ukraine’s anti-corruption institutions, Popova finds that Ukraine is better prepared for EU accession than is widely assumed.

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Will Dobson, book cover of "Defending Democracy in an Age of Sharp Power," and Chris Walker
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How Can Democracies Defend Against the Sharp Power of Autocrats?

Christopher Walker, Vice President for Studies and Analysis at the National Endowment for Democracy, and Will Dobson, co-editor of the Journal of Democracy, discussed their new book, “Defending Democracy in an Age of Sharp Power” (Johns Hopkins University Press 2023).
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Eugene Finkel presents during a REDS Seminar co-hosted by The Europe Center and CDDRL on April 18, 2024.
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The Historical Roots of Russia’s Quest to Dominate Ukraine

According to Eugene Finkel, the Kenneth H. Keller Associate Professor of International Affairs at Johns Hopkins University, Russia’s recurrent attacks against Ukraine can be traced to issues of identity and security.
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Beatriz Magaloni presents during a CDDRL research seminar on April 11, 2024.
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Can Indigenous Political Autonomy Reduce Organized Crime? Insights from Mexico

Beatriz Magaloni, the Graham H. Stuart Professor of International Relations, presented her latest research during a CDDRL seminar talk.
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While some observers have claimed that Ukraine’s corruption renders it unprepared for EU accession, Maria Popova’s research suggests otherwise.

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Can indigenous communities ruling through politically autonomous institutions better protect against cartel takeover? In a CDDRL seminar series talk, Beatriz Magaloni, the Graham H. Stuart Professor of International Relations, a Senior Fellow at Stanford’s Freeman Spogli Institute for International Studies, and Director of CDDRL’s Poverty, Violence, and Governance Lab argued that in Mexico, indigenous communities ruled by traditional governance have proven more resilient against cartel takeovers than comparable municipalities relying on state-backed security provision. 

Existing literature typically frames violence in developing countries as a manifestation of state weakness. But, in many areas of the world, organized criminal groups infiltrate the state, buying off intelligence, protection, and impunity. 

In Mexico, cartels infiltrate local governments by funding political campaigns, killing those who refuse to be bought off. In this context, the selection of leaders through conventional Western multi-party elections is an effective vehicle through which cartels can extend their influence. 

The capture of municipal political bodies is advantageous to cartels as it allows them to diversify their revenue generation. Access to intelligence, resources, and territory makes demanding regular payments and extracting natural resources far easier. It also allows cartels to gain discretionary power in the decision of who the state grants protection to or not. This bleak reality in which the borders between the state, organized crime, rule of law, and impunity are blurred elevates the urgency of investigating to what extent “opting out” of the state represents a viable alternative in the provision of security. 

In Oaxaca and other regions across Mexico, indigenous communities have the right to govern autonomously. In their traditional form of governance, known as “usos y costumbres,” local elections and political parties are banned. Authorities are instead selected through community assemblies, in which decision-making is highly participatory. Based on this traditional governance, a growing number of indigenous communities have established community police groups, which are detached from the state and constituted by local community members with little or no professional police training. 

Importantly, autonomous indigenous municipalities still receive state transfers and cannot be punished for opting out of the party system. In conducting extensive qualitative fieldwork, Magaloni sought to understand whether this traditional governance structure prohibits cartel infiltration and keeps communities safer. 

The team hypothesized that higher levels of cartel presence would increase violence – which they proxied with homicide rates. They expected less cartel presence and less violence in Usos (autonomous indigenous communities) relative to party-controlled municipalities. Lower levels of police corruption and better deterrence against criminal cells were also expected for communities ruled by Usos

The initial exploratory analysis showed that following the autonomous governance reform, Usos communities experienced a sharp decrease in violence. When the drug war began in 2006, these communities continued to see low levels of violence, whereas comparable municipalities suffered a sharp increase. 

Magaloni employed a variety of difference in difference analyses to control for possible confounders. Usos communities were compared to similarly sized, similarly indigenous communities. Using a geographic discontinuity design, Usos were also compared to municipalities just 1 km from the border of Oaxaca – those ruled by multi-party elections. The analysis controlled for opium poppy suitability and history of ancestral governance practices. 

The analysis confirmed that the more cartel presence, the more violence a community experienced. Across all models, the team was able to conclude that Usos communities saw significantly less cartel presence, fewer homicides, and less violence. 

Magaloni’s work highlights the state's limitations in creating order in circumstances where criminal groups have compromised it. It also suggests that in the context of these predatory regimes, indigenous political autonomy can serve as a powerful rampart to the corrosive presence of organized crime.

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Alisha Holland
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Infrastructure, Campaign Finance, and the Rise of the Contracting State

Harvard University Professor of Government Alisha Holland explains how the advent of public-private partnerships has shifted politicians’ orientation toward infrastructure projects.
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Sophie Richardson
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The Global Dimensions of the Chinese Government Human Rights Abuses

Why have democracies failed in curtailing Xi Jinping’s human rights abuses? And how can they better insulate themselves from Beijing's transnational threats? CDDRL Visiting Scholar and former China Director at Human Rights Watch Sophie Richardson presented her research on the Chinese government’s deteriorating human rights record.
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Beatriz Magaloni, the Graham H. Stuart Professor of International Relations, presented her latest research during a CDDRL seminar talk.

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Is Democratic Capitalism in Crisis?

Many developed democracies have been swept by waves of popular anger at aspects of capitalism. Informing this anger is the perception that private-sector markets and institutions do not properly reward innovation and hard work and instead undermine democratic institutions. Democracy, in this view, is failing to create rules and policies capable of generating fair markets and delivering basic human rights and social justice.

Do capitalists and their enablers undermine the principles of democracy by exacerbating inequalities and interfering with the justice system? How can we restore fairness and trust, increase transparency, and empower truth?

Join us to discuss these critical questions in this panel discussion celebrating the launch the new Program on Capitalism and Democracy (CAD) at the Center on Democracy, Development and the Rule of Law (CDDRL). Larry Diamond, Senior Fellow at the Freeman Spogli Institute for International Studies (FSI) and the Hoover Institution will engage with CAD faculty director Anat Admati, Professor of Finance and Faculty at the Graduate School of Business, and Patrick Alley, co-founder of the anti-corruption organization Global Witness. CDDRL Mosbacher Director Kathryn Stoner and GSB Dean Jon Levin will deliver introductory remarks.

This event is co-sponsored by the Corporations and Society Initiative (CASI) at the Graduate School of Business and the Center on Democracy, Development and the Rule of Law (CDDRL).

Speakers

Anat R. Admati

Anat R. Admati

CAD Faculty Director, George G.C. Parker Professor of Finance and Economics, Stanford Graduate School of Business
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Anat Admati is the George G.C. Parker Professor of Finance and Economics at Stanford University Graduate School of Business, Senior Fellow at the Stanford Institute for Economic Policy Research, and faculty director of the Corporations and Society Initiative. Her interests lie in the interaction of business, law, and policy, with a focus on governance and accountability issues. Since 2010, Admati has been engaged in policy discussions related to financial regulations. In 2014, she was named by Time Magazine as one of the 100 most influential people in the world and by Foreign Policy magazine as among 100 global thinkers. Admati has written on information dissemination in financial markets, financial contracting, corporate governance, and banking. She is the co-author, with Martin Hellwig, of The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It (Princeton University Press 2013, expanded edition 2024).

 

Patrick Alley

Patrick Alley

Co-Founder, Global Witness
2023 TED talk

Patrick Alley is the co-founder Global Witness, an organization that identifies key links between environmental and human rights abuses and is one of the pioneers of the global anti-corruption movement. Since 1995, Global Witness has garnered significant accolades and global recognition, including a nomination for the 2003 Nobel Peace Prize and several prestigious awards.

Patrick’s commitment extends beyond advocacy, having conducted over fifty field investigations globally, ranging from the destruction of rainforests in Southeast Asia, Africa, and Latin America, and contributing substantially to international efforts for greater transparency and accountability in the extractive industries. His dedication reflects a core belief in the transformative power of data and transparency to address critical global challenges, leading to substantive reforms in environmental protection and governance.

Patrick Alley is the author of Very Bad People, the story of how Global Witness uncovered a worldwide network of organized criminality, kleptocracy, and corruption and exposed the people behind it. His second book, Terrible Humans, will be published in May 2024 and gives the reader a fly-on-the-wall view of the work of activists and journalists exposing a pantheon of crimes, including the operations of the Wagner Group, sanctions busting, wildlife trafficking, and top-level political corruption in the EU.

 

Portrait of Hesham Sallam

Larry Diamond

Mosbacher Senior Fellow in Global Democracy, Freeman Spogli Insitute for International Studies
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Larry Diamond is the William L. Clayton Senior Fellow at the Hoover Institution, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI), and a Bass University Fellow in Undergraduate Education at Stanford University. He is also professor by courtesy of Political Science and Sociology at Stanford. He leads the Hoover Institution’s programs on China’s Global Sharp Power and on Taiwan in the Indo-Pacific Region. At FSI, he leads the Program on Arab Reform and Democracy, based at the Center on Democracy, Development and the Rule of Law, which he directed for more than six years. He also co-leads with (Eileen Donahoe) the Global Digital Policy Incubator based at FSI’s Cyber Policy Center. He is the founding coeditor of the Journal of Democracy and also serves as senior consultant at the International Forum for Democratic Studies of the National Endowment for Democracy. His research focuses on democratic trends and conditions around the world and on policies and reforms to defend and advance democracy. His latest edited book (with Orville Schell), China's Influence and American Interests (Hoover Press, 2019), urges a posture of constructive vigilance toward China’s global projection of “sharp power,” which it sees as a rising threat to democratic norms and institutions. He offers a massive open online course (MOOC) on Comparative Democratic Development through the edX platform and is now writing a textbook to accompany it.

Larry Diamond
Larry Diamond

In-person: Bass Library, Room 400, Graduate School of Business (655 Knight Way, Stanford) — Space is limited.

Virtual: Open to the public.

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George G.C. Parker Professor of Finance and Economics, Stanford Graduate School of Business
Director of the Corporations and Society Initiative, Stanford Graduate School of Business
Director of the Program on Capitalism and Democracy, Center on Democracy, Development and the Rule of Law
Senior Fellow, Stanford Institute for Economic Policy Research
Senior Fellow (by courtesy), Freeman Spogli Institute for International Studies
anat_admati-stanford-2021.jpg

Anat R. Admati is the George G.C. Parker Professor of Finance and Economics at Stanford University Graduate School of Business (GSB), a Faculty Director of the GSB Corporations and Society Initiative, and a senior fellow at Stanford Institute for Economic Policy Research. She has written extensively on information dissemination in financial markets, portfolio management, financial contracting, corporate governance and banking. Admati’s current research, teaching and advocacy focus on the complex interactions between business, law, and policy with focus on governance and accountability.

Since 2010, Admati has been active in the policy debate on financial regulations. She is the co-author, with Martin Hellwig, of the award-winning and highly acclaimed book The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It (Princeton University Press, 2013; bankersnewclothes.com). In 2014, she was named by Time Magazine as one of the 100 most influential people in the world and by Foreign Policy Magazine as among 100 global thinkers.

Admati holds BSc from the Hebrew University, MA, MPhil and PhD from Yale University, and an honorary doctorate from University of Zurich. She is a fellow of the Econometric Society, the recipient of multiple fellowships, research grants, and paper recognition, and is a past board member of the American Finance Association. She has served on a number of editorial boards and is a member of the FDIC’s Systemic Resolution Advisory Committee, a former member of the CFTC’s Market Risk Advisory Committee, and a former visiting scholar at the International Monetary Fund.

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This news entry was last updated on December 14, 2023.

APARC Communications Manager Michael Breger recently spoke with Dr. Soksamphoas Im, our Lee Kong Chian NUS-Stanford Fellow on Southeast Asia in fall 2023.

In this conversation, Im shares insights from her research on social welfare in Cambodia and how such public assistance is used by the ruling regime to establish legitimacy. You can listen to the interview on SoundCloud or read the audio transcript.

On November 29, 2023, Dr. Im presented her research at a seminar hosted by the Southeast Asia Program. You can view the event recording on our YouTube channel.

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Flanked by Sultan of Brunei Haji Hassanal Bolkiah (L) and President of Indonesia Joko Widodo (R), U.S. President Joe Biden points towards the camera.
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Jokowi’s Washington Visit Could Boost Bilateral Ties — or Highlight Problems

President Joko Widodo and his team arrive in Washington at an uncertain time in U.S.-Indonesia relations.
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Panelists gather to discuss APEC
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Trade Experts Gather to Discuss APEC’s Role and Relevance

Ahead of the 2023 Asia-Pacific Economic Cooperation (APEC) convening in San Francisco, APARC kicked off its fall seminar series, Exploring APEC’s Role in Facilitating Regional Cooperation, with a panel discussion that examined APEC’s role and continued relevance in a rapidly-evolving Asia-Pacific region.
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In this conversation, Dr. Soksamphoas Im, APARC's Lee Kong Chan NUS-Stanford Fellow on Southeast Asia, discusses her research into how the ruling Cambodian People’s Party combines coercive capacity with policy reform to legitimize its regime.

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