Introduction
This paper seeks to address the adverse effects of corruption on the rule of law in various Latin American countries. Some people have profited from corruption, while others have borne the brunt of its effects on the rule of law (Somma et al., 2020). Corrupt government officials have contributed to the exploitation of public resources to serve private interests rather than meet the needs of the general population.
A culture of impunity has also emerged due to corruption, meaning that those found to be in breach of the law are not held accountable for their actions (Chaudhary & Moss, 2019). Because of corruption, elected officials break the fiduciary commitments they have been entrusted with by the public, which harms the democratic process as a whole. Political corruption in Brazil has negatively impacted the rule of law, leading people to believe it does not apply to them and reducing trust in public institutions.
Effects of Corruption on Latin America
Legitimacy of Institutions
Corruption has weakened the rule of law in Latin America by eroding public institutions’ perceived legitimacy. The judicial system and other law enforcement authorities are increasingly being exploited for personal gain rather than for upholding the rule of law. As a result of political leaders abusing their power to select favored candidates for critical roles within law enforcement institutions, corruption has eroded the autonomy and independence of these organizations.
This is evident in Venezuela, El Salvador, and Peru, where 90 percent of the population does not trust government institutions due to corruption (Lagunes et al., 2023). Because of this, law enforcement agencies are increasingly being used for private gain rather than to serve the public interest and achieve their goals. The public’s lack of faith in government agencies is directly attributable to widespread corruption within those agencies.
The issue of corruption weakening the legitimacy of institutions appears in the case of seven magistrates in Brazil being removed from a regional court of accounts on corruption allegations. It has been asserted that the magistrates favored several contractors by awarding them bids and public contracts at inflated prices (Lino et al., 2022). Additional cases have also been brought forth that link magistrates to instances of collecting kickbacks and engaging in bid rigging to benefit particular individuals.
Authorities appointed to combat corruption are not fulfilling their duties and are instead contributing to the growth of a network of corruption. This suggests that specific individuals have continued to benefit from corrupt practices even though measures have been put in place to combat the problem. Chile had corruption levels similar to those of Brazil in the 1900s, but measures implemented since the 1990s have significantly reduced the corruption rate (Lagunes et al., 2019). It has become challenging to charge famous people due to political influence over law enforcement agencies and the judiciary.
Rule of Law
Corruption has also played a significant role in the unequal application of the rule of law, favoring some people. This has led to a sense of injustice and inequality in the judicial system, as those with money and power have influenced legal outcomes. Public members have begun to develop the view that justice is available only to those with the resources to afford it.
Corruption has enabled traditional elites to remain in power while reproducing the unequal economic and social status quo, despite the rise of democratization. This indicates that corruption has allowed some people to remain above the law, enabling them to use their influence over others without facing legal charges. This has been seen in the case of the Guatemalan president, who has tried to use his power and influence to eliminate the United Nations mission to address impunity and corruption in the country. The president has been under investigation for violating national and international norms through corruption.
Abuse of Power for Personal Interest
The rule of law has suffered due to corruption, resulting in public positions being used to satisfy personal interests rather than the requirements of the general public. The frequency of unethical behavior, particularly within government institutions, has increased, in part, as a direct result of corrupt authorities. In most instances, members of the general public are required to pay bribes to obtain necessary services. As a result, a significant number of people, particularly those with low-wage jobs, lack access to essential services.
The involvement of elected officials in corruption scandals has led to many of them being impeached or removed from office. Both the former President of Brazil, Fernando Collor de Mello, and the former President of Venezuela, Carlos Andrés Pérez, were dismissed from office for the misuse of public funds (Kurtenbach, 2019). This indicates that popular political figures have used their positions to satisfy personal interests rather than fulfill their duties.
Corruption has also undermined the rule of law in Latin American countries by affecting the most vulnerable members of society. As a result of corruption, public resources are siphoned off to serve private interests, causing public services such as education and healthcare to struggle. When individuals think they are being ignored, situations like these can easily contribute to increasing poverty levels, inequality, and social unrest in a society. This is especially true when people believe that they are being ignored.
Example: Operation Car Wash
Public officials in Brazil have been brought into the spotlight for their involvement in the Petrobras corruption scandal, popularly known as Operation Car Wash. An extensive network of bribery, money laundering, and kickbacks was allegedly engineered by Petrobras executives, contractors, politicians, and political parties in the scandal. Under the plan, several businesses with contracts with Petrobras overcharged the company for services and then gave the additional cash to involved executives, politicians, and political parties. The money from these payments was subsequently used to bribe authorities and fund political campaigns.
Several prominent politicians, corporate leaders, and Petrobras personnel, including former President Luiz Inácio Lula da Silva, were detained and charged as part of an investigation conducted by Brazilian federal prosecutors. A significant money-laundering scheme involving offshore accounts and shell companies was also identified during the inquiry. With estimates indicating that more than $2 billion in bribes were paid over several years, the Petrobras scandal is one of the worst corruption scandals in Brazilian history (Lima-de-Oliveira, 2020). With the former president of Brazil, Dilma Rousseff, being impeached and several notable politicians and corporate executives being imprisoned, the scandal has had a tremendous impact on Brazilian politics. The scandal also had a substantial effect on Petrobras, which was subject to legal action, financial penalties, and reputational damage.
Impunity of Government Officials
Another way in which corruption has affected the rule of law in Latin America is by promoting and protecting impunity among elected government officials. Officials have been known to take bribes in this situation, so they will not enforce the law and instead look the other way when illegal activities occur. Because of this, certain people have been assured that they will not be prosecuted for their actions, allowing them to act without fear of repercussions.
In this situation, someone can cause harm to others without legal action being taken against them. As a result of corruption, the number of instances of nepotism has risen, in which influential people try to shield their friends and family from legal consequences. Corruption has resulted in specific individuals being excused from punishment while others have been forced to face the full wrath of the law.
Example: The Zelotes Scandal
The case of corruption promoting impunity has been visible in Brazil since the uncovering of the Zelotes scandal. The Zelotes controversy involves charges of bribery and influence-peddling at the Conselho Administrativo de Recursos Fiscais (CARF). This tax tribunal hears appeals from taxpayers challenging tax assessments issued by Brazil’s revenue department. The conspiracy involved several businesses, attorneys, and government representatives who reportedly paid off CARF employees to lower or eliminate tax liens for their clients.
Some of the money is said to have been laundered through overseas accounts, and the bribes were paid through front firms and phony consulting agreements. Around $3 billion in tax fraud is thought to have been committed overall as part of the operation(Arantesa et al., 2019). The Zelotes incident was noteworthy for the amount of fraud involved and for exposing flaws in Brazil’s tax code and the susceptibility of regulatory bodies to corruption. The scandal shows how people in positions of influence have used corruption to their advantage.
Conclusion
In conclusion, the perception that everyone is not treated equally under the law has grown due to corruption, undermining confidence in the judicial system and the government. Corruption favors influential people, leaving the vulnerable to bear the negative consequences. This has led public and government officials in Latin American countries such as Brazil to use their positions to advance personal interests rather than fulfill their duties. Such officials have also tried to use their positions to avoid legal consequences by bribing members of the judiciary. Poor people have been denied access to essential services because they do not have the resources to pay bribes. The various instances of corruption have led members of the public to have reduced trust in public institutions and the rule of law.
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