Playing fair

Two ex-executives of Willbros company recently got jail sentences for the crime of bribing Nigerian officials in order to win a gas pipeline contract. That's a violation of the Foreign Corrupt Practices Act that was enacted in 1977. The FBI just this week charged a bunch more U.S and U.K. citizens with bribing an African official as part of an arms deal.

I find it interesting that in neither case has there been any fallout on the African side. No officials in Nigeria have been arrested in the first case and you will notice in the second that the country involved has not been revealed. This sounds a bit one sided doesn't it? American justice puts these guys in jail for giving money to Africans who take it and laugh all the way to the bank.

Other countries don't have or don't enforce a similar law. I'm talking about Russia, China and India. All three are doing their best to grab African resources. Without the threat of legal sanctions back home, they are spreading around millions of dollars and getting what they want. In the DRC in 2008, China grabbed copper, cobalt and other mines in return for building infrastructure. That means road, schools, hospitals etc, $9 billion worth. The deal gives china rights to 10 million tons of copper which at a 2010 price (conservatively) of $5000 per ton, works out to be $50 billion. (there's also 600,000 tons of cobalt) Not a great deal for the country perhaps, but I assure you it was a great deal for the DRC government officals. Similar deals are happening throughout Africa.

So is it fair for American companies not to be able to engage in business practices, I mean bribes, that other companies use routinely? Since the Africans seem unable to stop the incoming bribes on their side then it is up to these other countries to stop the practice. Is this likely, not very.