May 22, 2008

Hon. Roy Cullen, M.P. (Etobicoke North)

News Release

Roy Cullen MP, Continues
Fight against Corruption

OTTAWA - Continuing his work in the fight against global corruption and money laundering, The Honourable Roy Cullen, Member of Parliament for Etobicoke North, has completed a book, The Poverty of Corrupt Nations.

In discussing his work Cullen said, "Corrupt countries are generally poor and the fight against poverty in these countries is hindered because of the negative effects of bribery and corruption on investment, both private and public." Roy Cullen's commitment to the fight against corruption and money laundering is based on the premise that the levels of bribery and corruption in some countries are morally and economically indefensible.

Mr. Cullen has been very active with the Global Organization of Parliamentarians Against Corruption (GOPAC) in the international fight against corruption and money laundering. He has spoken out on the scourge of corruption and money laundering, and has played a leadership role at a number of international anti-corruption and anti-money laundering workshops and conferences. The book examines how money laundering is closely linked to corrupt leaders. During his tenure as Parliamentary Secretary to the Minister of Finance, Mr. Cullen was actively involved in designing and implementing Canada's anti-money laundering regime.

With this book Mr. Cullen hopes to increase the awareness of the general public, elected officials and policy makers of the enormity of the problem. His Twenty Point Plan, which is outlined in the book, points the way to possible solutions to the vexing challenges of corruption and money laundering.

A backgrounder is attached.

For more information, please contact:
Office of the Honourable Roy Cullen, P.C., M.P.
Room 317, West Block

613-995-4702

The Poverty of Corrupt Nations

Backgrounder

Introduction

The book is based on the premise that there is the need for world leaders to address the growing disparities between the rich and poor nations. How big is this gap and what are the trends? As David Landes highlights in The Wealth and Poverty of Nations, "The difference in income per head between the richest industrial nation, say Switzerland, and the poorest non-industrial country, Mozambique, is about 400 to 1. Two hundred and fifty years ago, this gap between richest and poorest was perhaps 5 to 1." These developments are significant and not inconsequential. Without effective intervention the problem is likely to worsen, as most of the projected population increase in coming years will be in the poorest countries. It is estimated that in today's world, 20,000 people perish every day from extreme poverty (some argue that the figure is 50,000 daily deaths from poverty-related causes).

We know that disparities between the rich and poor nations are not a function of corruption alone. In fact, corruption is not an unknown phenomenon in the so-called developed world. Many different factors influence a country's ability to fight poverty - geographic location, history of conflict, endowment of natural resources, and many more complicated factors can all have an influence.

The author argues that there is a need, however, to deal with bribery and corruption, a growing activity and one of the key factors that is slowing growth and reducing economic opportunities in the developing world. Corruption is a phenomenon that we can control if we put our minds to it. The poverty of the world's poor nations is significantly exacerbated through bribery and corruption.

Conventional approaches to battling poverty and corruption have not worked and need to be examined. We need to begin thinking and acting creatively to develop a new paradigm. Not only do the problems of income distribution amongst the political elites, the working poor, and the poverty-stricken become more exaggerated, but it saps hope. Corruption also leads to political instability, donor fatigue, and the disappearance of much needed investment capital in the affected countries.

Bribery and corruption are pervasive throughout the world-probably at their worst in Africa, Asia, South and Central America, and Eastern Europe. In Africa, by way of example, from estimates derived by the African Union itself, some US $ 148 billion a year is lost every year to corruption. Africa is also the continent with the greatest number of people living in poverty. By contrast, Africa is also a continent rich in natural resources, owning 50 per cent of the world's gold, 98 per cent of its chromium, 90 per cent of its cobalt, 64 per cent of its manganese and 33 per cent of its uranium.

In China, corruption diminishes the annual gross domestic product by 15 per cent. The pattern repeats itself around the world.

Nigeria's anti-corruption commission recently reported that the country's past rulers stole or misused US $500 billion (equal to all the Western aid to Africa in four decades).
A recent World Bank survey on Africa claims, "The amount stolen and now held in foreign banks is equivalent to more than half of the continent's external debt." While the rest of the world looks for ways to relieve African nations of their debt burdens, which in many cases is prohibitive, these funds would be more useful in paying down some of these debts.

Comments on the book

"Roy Cullen's pioneering work goes straight to the heart of the corruption phenomenon. He shows us not only its true nature and extent but also its links with many other ills befalling the world community. The Poverty of Corrupt Nations should be obligatory reading for policymakers, businesspeople, and concerned citizens."

RT. HON. TERRY DAVIS, Secretary General, Council of Europe

"Roy Cullen through his work with the Global Organization of Parliamentarians Against Corruption is performing an invaluable service for the world's poor. The facts are irrefutable. Corruption is leaving millions in shameful poverty."

RT. HON. PAUL MARTIN, M.P., former Prime Minister of Canada

"The significant negative impact of corruption on the lives of citizens is well documented in The Poverty of Corrupt Nations. Roy Cullen's commitment to the Global Organization of Parliamentarians Against Corruption (GOPAC), and to the fight against corruption and money laundering is legendary. The solutions he proposes to attack this problem will be of great interest to policy makers in developing countries, and to citizens of the world."

MRS. FATIMA BELMOUDEN, Member, Moroccan Parliament;
Vice-Chair, Arab Region Parliamentarians Against Corruption

"Roy Cullen has been a tireless worker in the fight against corruption, and in the anti money laundering agenda. Through his work the poor can hopefully look forward to some prosperity while the corrupt leaders, having stolen so much from their citizens who have so little, can anticipate greater scrutiny and accountability. The Poverty of Corrupt Nations is a 'must read' for everyone with a conscience."

JOHN G. WILLIAMS, F.C.G.A., Member of Parliament, Canada;
Chair, Global Organization of Parliamentarians Against Corruption

"Government ministers and parliamentarians around the world know Roy Cullen as a tireless fighter in the battle against corruption. I have had the privilege of working with him in the Organization for Security and Cooperation in the Europe Parliamentary Assembly to combat corruption and money laundering. Publication of The Poverty of Corrupt Nations is sure to be a valuable resource for policymakers and practitioners."

BENJAMIN L. CARDIN, United States Senator for Maryland

About the author

Born in 1944 in Montreal, Roy Cullen earned his B.A. in Business Administration and a Master of Public Administration. He qualified as a Canadian Chartered Accountant in 1972. During his career, Mr. Cullen served as an assistant deputy minister in the British Columbia Ministry of Forests and as a vice-president in the Noranda Forest Group (now Norbord). Initially elected to the House of Commons in Ottawa in a by-election in 1996, he was re-elected in the 1997, 2000, 2004, and 2006 general elections, and remains a member of Parliament today.

As a member of the Chrétien and Martin governments, Mr. Cullen served as chair of the House of Commons Standing Committee on Finance, as parliamentary secretary to the minister of finance, as parliamentary secretary to the deputy prime minister and the minister for public safety and emergency preparedness; and as chair of the Ontario Liberal caucus. He has also served as Official Opposition critic for natural resources. He was sworn in as a member of the Privy Council of Canada in 2004.

During his tenure as parliamentary secretary to the minister of finance, Mr. Cullen was actively involved in designing and implementing Canada's anti-money-laundering regime. Since being elected Mr. Cullen has been very active with the Global Organization of Parliamentarians Against Corruption (GOPAC) in the international fight against corruption and money laundering. He has spoken out on these scourges and has played a leadership role at several anti-corruption and anti-money-laundering workshops and conferences.

Mr. Cullen worked and lived abroad in Africa and the Caribbean, and in British Columbia, before settling in Toronto where he now lives with his wife, Ethne. They have one son, Peter.