Law Commons^™

Unwitting Sanctions: Understanding Anti-Bribery Legislation As Economic Sanctions Against Emerging Markets, Andrew B. Spalding

Andrew B Spalding

Although the purpose of international anti-bribery legislation such as the U.S. Foreign Corrupt Practices Act is to deter bribery, empirical evidence demonstrates a more problematic effect. In countries where bribery is perceived to be relatively common, the present enforcement regime goes beyond deterring bribery and actually deters investment. Drawing on literature from political science and economics, this article argues that anti-bribery legislation, as presently enforced, functions as de facto economic sanctions. A detailed analysis of the history of FCPA enforcement shows that these sanctions have most often occurred in emerging markets, where historic opportunities for economic and social development otherwise …