Corruption undermines sustainable development and has a corrosive impact on growth. It introduces uncertainty, makes access to capital more expensive, discourages foreign investment and erodes fair competition.
Besides the negative effect on resource allocation and business efficiency, corruption serves as one of the main causes of inequality. The cost of corruption has been estimated at about 5% of the global GDP. Every stolen dollar robs the most vulnerable of equal opportunities in life.
Corruption breaks the social contract between citizens and States. It affects the overall governance and institutional environment. Along with income inequality, corruption breeds regulatory ineffectiveness and government inefficiency. More serious crimes follow, as illicit financial flows find their way across countries.
For these reasons, integrity and compliance will be among the top priorities at B20 Argentina. The business community of the G20 countries will continue to address issues like full implementation of FATF recommendations on transparency and beneficiary ownership, but will also focus on improving transparent and open government procedures, including budgeting, agreements related to infrastructure, public contracting and customs. B20 will also focus on standards of integrity, transparency and compliance for state-owned and state-related enterprises in a digital age.