Most countries have made little to no progress in bringing down corruption levels over the past decade, and authorities’ response to the COVID-19 pandemic in many places has weighed on accountability, a closely watched study by an anti-graft organization found Tuesday.

Transparency International’s 2021 Corruption Perceptions Index, which measures the perception of public sector corruption according to experts and business people, found that “increasingly, rights and checks and balances are being undermined not only in countries with systemic corruption and weak institutions, but also among established democracies.”

Among other issues over the past year, it cited the use of Pegasus software, which has been linked to snooping on human rights activists, journalists and politicians across the globe.

The report said the pandemic has “been used in many countries as an excuse to curtail basic freedoms and sidestep important checks and balances.”

In Western Europe, the best-scoring region overall, the pandemic has given countries “an excuse for complacency in anti-corruption efforts as accountability and transparency measures are neglected or even rolled back,” Transparency said. In some Asian countries, it said, COVID-19 “also has been used as an excuse to suppress criticism.” It pointed to increased digital surveillance in some nations and authoritarian approaches in others.

The report ranks countries on a scale from a “highly corrupt” 0 to a “very clean” 100. Denmark, New Zealand and Finland tied for first place with 88 points each; the first two were unchanged, while Finland gained three points. Norway, Singapore, Sweden, Switzerland, the Netherlands, Luxembourg and Germany completed the top 10. The U.K. was 11th with 78.

The United States, which slipped over recent years to hit 67 points in 2020, held that score this time but slipped a couple of places to 27th. Transparency said it dropped out of the top 25 for the first time “as it faces continuous attacks on free and fair elections and an opaque campaign finance system.”

Canada, which slid three points to 74 and two places to 13th, “is seeing increased risks of bribery and corruption in business,” the group said. It added that the publication of the Pandora Papers showed Canada as “a hub for illicit financial flows, fueling transnational corruption across the region and the world.”

The index rates 180 countries and territories. South Sudan was bottom with 11 points; Somalia, with which it shared last place in 2020, tied this time with Syria for second-to-last with 13. Venezuela followed with 14 — then Yemen, North Korea and Afghanistan tied with 16 apiece.

Transparency said the control of corruption has stagnated or worsened in 86% of the countries it surveyed in the last 10 years. In that time, 23 countries — including the U.S., Canada, Hungary and Poland — have declined significantly in its index, while 25 have improved significantly. They include Estonia, the Seychelles and Armenia.

Compiled since 1995, the index is calculated using 13 different data sources that provide perceptions of public sector corruption from business people and country experts. Sources include the World Bank, the World Economic Forum and private risk and consulting companies.
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A Slovenian business group has said its members are facing a Chinese backlash days after Prime Minister Janez Jansa publicly discussed his hopes for closer ties with Taiwan during an interview. It marks the latest case of China refusing to tolerate dissent on the issue of Taiwan’s autonomy.  

On January 17, Jansa told Indian media that he hoped Taiwan and Slovenia could open mutual representative offices. He also praised Taiwan’s COVID-19 response and said Taiwan should determine its relationship with China independently. Opening offices in Taiwan would bring Slovenia in line with the rest of the European Union, as it is one of only a handful of countries — including Bulgaria, Croatia, Estonia, Malta, and Romania — without a Taiwanese mission.    

Swift criticism against Jansa came from the Chinese government describing his remarks as “dangerous.” China considers Taiwan a province and treats any discussion of its disputed political status as taboo. 

Moreover, within days of the interview, the Slovenian-Chinese Business Council said Chinese partners were already “terminating contracts and exiting the agreed investments,” according to the Slovenian Press Agency. The business group and its parent organization, the CCIS- Ljubljana Chamber of Commerce and Industry, did not immediately respond to VOA’s email inquiries. 

The statement has also drawn fire both from Slovenia’s opposition and businesses with links to China. In an email response to VOA, Sasa Istenic, the director of the Taiwan Study Center at the University of Ljubljana, said his remarks “were his personal position not in tune with the National Assembly and could severely harm Slovenia’s economic cooperation with China.”   

Business groups in Slovenia fear they could suffer the same fate as Lithuania, which is now under a Chinese trade embargo in retaliation for pursuing closer ties with Taiwan, Istenic said.

“The Chinese market remains important for Slovenian companies and [the] Slovenian government has certainly been paying attention to China’s retaliation measures directed toward Lithuania,” Istenic said. “We have yet to see how far China is willing to go in preventing the EU member states from upgrading their relationships with Taiwan.”    

The EU maintains the “One China Policy” which recognizes Taiwan as part of the Chinese nation, and has traditionally had a less tumultuous relationship with Beijing than has the United States. But dissent is growing within the EU and some countries in Central and Eastern Europe have also found that promises of Chinese investment have not panned out as previously hoped, according to a 2021 report by the Central and Eastern Europe Center for Asian Studies.    

China’s growing strength in the Asia-Pacific region has also alarmed both the EU and NATO. The COVID-19 pandemic, combined with Beijing’s human rights violations in Xinjiang, Hong Kong and Tibet, have raised questions about its suitability as a close partner.

These concerns have given Taiwan a wedge to improve its relationship with some countries in Europe such as the Czech Republic, Slovakia, and, most notably, Lithuania.   

Lithuania and Taiwan have grown closer during the pandemic, swapping donations of vaccines and emergency protective gear. But, in April, Lithuania exited the Cooperation between China and Central and Eastern European Countries trade initiative, a group formed in 2012 to improve trade and investment and known colloquially as the “16+1.”    

In November, Taiwan opened a controversially named “Taiwan representative office” in Lithuania. The office angered Beijing as it broke with the tradition of Taiwan using more politically neutral names like “Taipei Economic and Cultural Office” or “Taipei Representative Office” that did not suggest it was an independent political entity.    

Aware of the economic cost of its closer ties, Taiwan has worked to offset some of the newfound economic pressure on Lithuania by pledging a combined $1.2 billion in investment across several sectors including industries like semiconductors, biotechnology and lasers.    

“[This] investment is meant to shape Taiwan’s image as a reliable partner and viable democratic alternative to China, so there is both a financial and a political dimension to these financial proposals for investment,” said Zsuzsa Anna Ferenczy, postdoctoral researcher in Taiwan and former political adviser in the European Parliament, over email.  

Access to Taiwan’s advanced technology sector could also be an attractive pull for other European countries, including Slovenia, whose automotive manufacturing and metallurgical industries rely on industrial robots. 

Una Aleksandra Berzina-Cerenkova, a China scholar and head of the Asia program at the Latvian Institute of International Affairs, said Slovenia’s plan to potentially upgrade ties with Taiwan is a sign that Europe has not lost interest in democracy despite coercive measures from Beijing.    

“It seemed that there was a bit of a loss of momentum when the Lithuania example was not being followed by others in terms of withdrawing from the 16+1 and then turning towards Taiwan,” said Berzina-Cerenkova by phone.  

“But we actually see that Lithuania is leading … against the backdrop of attracting all the heat to itself. The other Central and Eastern European countries are actually also exploring opportunities, and trying to ride this train of momentum in their relations with Taiwan, because Taiwan, of course, is an interesting partner.”    

Some sectors in Slovenia could have a lot more to lose, however, than Lithuania. While cumulative Chinese investment in Lithuania was just 82 million euros in 2020, according to the Central and Eastern Europe Center for Asian Studies, investment in Slovenia was valued at a far greater 1.5 billion euros over the same period. Much of that investment is represented by a single acquisition of a video game developer, the report said.   

Other countries in the EU may need more support to weather the Chinese economic backlash if they choose to strengthen ties with Taiwan. So far, said Ferenczy, that support has taken the form of statements of support and resolutions in the EU Parliament, but she said more is needed. 

“The EU’s toolbox is limited. It is in the process of drafting its anti-coercion instrument designed to reinforce its resilience. It will be key to ensure the instrument works effectively in order to make a difference in terms of pushing back against China’s coercion,” Ferenczy said. “So, whether Brussels will stand with Lithuania and jointly push back against such messaging all the way, is key for the EU’s credibility and its ambition to be able to defend its interests.” 
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The Russian stock market took a dive Monday as war fears triggered a massive sell-off, with tens of billions of dollars wiped from the value of some of the country’s leading businesses.

As concerns mount that President Vladimir Putin is poised to order an invasion of neighboring Ukraine, the ruble also hit a 14-month low, prompting the Central Bank to intervene by halting its regular purchases of foreign currency to help prop up the ruble.

“The Bank of Russia has decided not to purchase foreign currency on the domestic market,” the bank said in a statement. “This decision was made in order to reduce the volatility of financial markets.”

The bank regularly converts the proceeds of the country’s oil and gas exports to avoid the ruble being impacted by swings in the value of global commodities.

The bank offered no details on when it would resume buying foreign currencies. The ruble was down 2.3% in early Monday trading but steadied after the bank’s announcement.

Meanwhile, the Russian stock market plunged more than 10% on Monday but was 7% down when trading concluded. Since the start of the Russian military buildup on the borders of Ukraine in October, the market has lost more than a quarter of its value.

Anders Aslund is chairman of the International Advisory Council at the Center for Social and Economic Research, a policy group in Warsaw, Poland. Aslund predicts the market could fall much further if the geopolitical confrontation between Russia and Western powers over Ukraine worsens.

“So far, the Russian RTS stock index in USD has only fallen 27% from its high point on October 27 before Putin started threatening Ukraine,” Aslund tweeted. “It has far more to fall. In 2008, it fell by 80% from May to October (Georgia war + global financial crisis).”

Meanwhile, the European stock markets have held fairly steady in recent weeks — a blitheness that’s not necessarily reassuring, analysts say, as the European stock markets didn’t miss a beat in the immediate wake of the assassination of Archduke Franz Ferdinand in Sarajevo in 1914, a slaying that triggered World War I. 

The London and Paris bourses were “slow to grasp why Sarajevo was different and unique,” noted Ambrose Evans-Pritchard, international business editor of The Telegraph.

European investors and traders appeared Monday to take greater note of the geopolitical maneuverings, and markets nudged down lower on the news that Britain was joining the United States in withdrawing some diplomats and their families from the embassies in Kyiv, the Ukrainian capital. 

The German and French stock markets were down about 2% in early trading, with analysts saying a New York Times report that U.S. President Joe Biden is considering deploying 5,000 troops to bolster the defenses of Ukraine’s NATO neighbors contributed to jitters.

The London stock market also traded lower. Some analysts suggested the dips were as much the result of traders watching what the U.S. Federal Reserve might do about tightening monetary policy than the unfolding Ukraine crisis.

With the crisis deepening, the attention of the markets and Western policy makers is turning to the possible energy implications for Europe, which gets about half of its natural gas supplies from Russia. Fears have been mounting that the Kremlin might retaliate by stopping gas exports in the event the West imposes fresh sanctions on Russia. The result would be an energy shock for a continent that is already mired in an energy crunch and experiencing soaring prices.

“Should tensions between Russia and the Ukraine escalate, the initial uncertainty around its impact on gas flows would likely lead the market to once again add a significant risk premium to European gas prices,” Goldman Sachs analysts told clients.

Last week, the Reuters news agency reported the U.S. State Department has been putting together a global strategy to increase supplies of liquefied natural gas to Europe in the event a Russian invasion of Ukraine leads to gas shortages.

Amos Hochstein, senior adviser for energy security at the State Department, has been holding talks with several Middle East and North African countries, as well as companies in Europe, about how to boost gas supplies if Russia seeks to weaponize energy.

In London Monday, British Prime Minister Boris Johnson told reporters that the intelligence about Russian intentions was “gloomy” but added that a Russian invasion was not inevitable.

“The intelligence is very clear that there are 60 Russian battle groups on the borders of Ukraine. The plan for a lightning war that could take out Kyiv is one that everybody can see. We need to make it very clear to the Kremlin, to Russia, that that would be a disastrous step,” Johnson said.

He added, “We also need to get a message (to Moscow) that invading Ukraine, from a Russian perspective, is going to be a painful, violent and bloody business. I think it’s very important that people in Russia understand that this could be a new Chechnya.”

He was referring to the brutal wars fought between Russia and Chechen rebels in the 1990s that left tens of thousands of people dead. Chechnya had waged wars of independence against Russia.

Speaking as Britain started to withdraw some embassy staff from Ukraine, Johnson said, “We do think it prudent to make some changes now.”
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A United Nations report released Monday said the world is failing to insure that by 2030 all children are receiving an “inclusive and equitable quality education and lifelong learning opportunities.” 

The indicators used to determine a participating country’s success included: early childhood education attendance; drop-out rates; completion rates; gender gaps in completion rates; minimum proficiency rates in reading and mathematics; trained teachers; and public education expenditure. 

The United Nations Educational Scientific and Cultural Organization, or UNESCO, said countries were already failing their children “even before taking into account the potential consequences of COVID-19 on education development.”  

This failure “is a wakeup call for the world’s leaders,” UNESCO’s report said, “as millions of children will continue to miss out on school and high-quality learning.” 

The education benchmarks are included in Sustainable Development Goal 4 – one of 17 goals set up in 2015 by the U.N. General Assembly. The goals are intended to be achieved by 2030. 
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